Accounting 9706/13 May June 2017 | Cambridge AS Level Past Papers With Mark Scheme

1. Materiality concept and revenue recognition: Non-capitalization of minor items, accurate revenue reporting, and treatment of sale or return goods in financial statements.
2. Depreciation and asset valuation: Reasons for charging depreciation, calculation of depreciation charges, and determination of profit or loss on asset disposal.
3. Control accounts and inventory valuation: Correction of errors in control accounts, reconciliation of discrepancies, and calculation of closing inventory using markup method.
4. Partnership adjustments and financial statement effects: Recording partner’s drawings, profit appropriation, impact of goodwill on capital accounts, and changes in equity due to share issues.
5. Financial ratios and capital structure: Calculation of non-current asset turnover, analysis of costs based on production levels, and assessment of inventory valuation methods (AVCO and FIFO).
6. Break-even analysis and budgeting: Calculation of margin of safety, determination of break-even point, effect of changes in fixed and variable costs on business profitability, and understanding the functions of budgeting in resource allocation.