Accounting 9706/32 March 2017 | Cambridge AS Level Past Papers With Mark Scheme

1. Financial statement preparation and liquidity analysis: Definition of intangible asset (IAS 38), preparation of income statement for XY Limited, calculation of working capital cycle, and discussion on liquidity improvement strategies.
2. Audit roles and financial adjustments: Differences between external and internal auditor roles, recommended treatments for dividend proposals, asset depreciation methods, goodwill valuation, and inventory valuation in financial statements.
3. Non-profit financial management: Differences in financial statement terminology for clubs, preparation of snack bar trading account, subscriptions account, funding options for repairs, and analysis of sponsorship advantages and disadvantages.
4. Consignment accounting and investment decision: Preparation of consignment account, accounts for Sachin and Tajid, analysis of reasons for falling selling prices, and discussion on investment options between consignment and new project.
5. Variance analysis and standard costing: Calculation of material, labour, and fixed overhead variances, preparation of cost reconciliation statement, and evaluation of the necessity of maintaining a standard costing system.
6. Investment appraisal and decision-making: Distinction between NPV and IRR, calculation of expected NPV and IRR for machine replacement, and analysis of benefits for LH Limited in acquiring a new machine.