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

1. Manufacturing account and financial statement preparation: Calculation of manufacturing account, income statement formulation, and inventory valuation adjustments for Richard Ang’s sofa bed business.
2. Financial ratios and investment analysis: Calculation of return on capital employed, earnings per share, price earnings ratio, dividend cover, and dividend yield. Evaluation of a proposed investment and its impact on financial performance.
3. International Accounting Standards and financial adjustments: Importance of compliance with standards, revision of financial position based on auditor findings, and analysis of adjustments for legal claims, bad debts, and asset depreciation.
4. Partnership dissolution and business acquisition: Calculation of goodwill, profit on realization, preparation of partners’ capital accounts, and discussion on the advantages of business acquisition by C Limited.
5. Variance analysis and budget management: Preparation of flexed budget, calculation of labour and materials variances, and evaluation of alternative staffing strategies to manage costs and efficiency.
6. Investment appraisal and machine selection: Calculation of cash flows, payback period, net present value (NPV), internal rate of return (IRR), and comparison of two machines based on financial metrics and additional qualitative factors.