Accounting 9706/31 May June 2017 | Cambridge AS Level Past Papers With Mark Scheme

1. Financial statement adjustments: Preparation of income statement and statement of changes in equity for XY plc, including adjustments for inventory valuation, machine costs, motor vehicle transactions, and depreciation policies.
2. Audit adjustments and inventory valuation: Revision of G Limited’s statement of financial position, treatment of rental payments, penalty provisions, irrecoverable debts, and advice on switching from AVCO to FIFO for inventory valuation.
3. Joint venture accounting: Calculation of joint venture profit sharing between Greaves and Hurst, preparation of ledger accounts, and evaluation of forming a partnership based on joint venture experiences.
4. Investment analysis for potential investors: Calculation and evaluation of financial ratios for LM plc and AB plc, including earnings per share, price earnings ratio, dividend yield, and dividend cover. Analysis of gearing ratios and investment advice for James.
5. Costing and budget variance analysis: Preparation of flexed budget and calculation of direct labour rate, efficiency, and total variances for EF plc. Discussion of the impact of retraining on labour efficiency and cost management.
6. Activity-Based Costing (ABC) implementation: Calculation of full cost per unit using ABC for Ahmed’s products, comparison with traditional costing, and recommendation on accepting a special order based on cost analysis and strategic factors.