Accounting 9706/21 May June 2017 | Cambridge AS Level Past Papers With Mark Scheme

1. Financial performance and ratio analysis: Preparation of income statement, calculation of inventory turnover, liquid ratio, trade payables turnover, and comparison of AB Limited's performance with XY Limited.
2. Error correction and profit adjustment: Calculation of revised profit after correcting errors in sales invoice, returns outwards, and inventory valuation.
3. Partnership dissolution and financial settlement: Preparation of realization account, calculation of partner settlements, reasons for partnership dissolution, and handling debit balances on partner's capital account.
4. Double-entry book-keeping benefits and ledger reconciliation: Advantages of double-entry book-keeping, reconciliation of sales ledger control account, and reasons for credit balances in customer accounts.
5. Break-even analysis and profitability planning: Calculation of fixed costs, budgeted units for target profit, contribution to sales ratio, break-even chart preparation, and analysis of the significance of margin of safety.
6. Pricing strategy and decision-making: Calculation of required sales to maintain contribution, evaluation of proposed price increase, and consideration of both financial and non-financial factors in decision-making.