Accounting 9706/33 May June 2017 | Cambridge AS Level Past Papers With Mark Scheme

1. Financial statements preparation: Income statement and statement of changes in equity for XY plc, including adjustments for depreciation, irrecoverable debts, and inventory valuation. Advice on bonus issue vs. cash dividend.
2. Revisions to financial position: Preparation of revised statement of financial position for G Limited, treatment of rental agreements, penalties, and bankruptcies in financial statements, and advice on inventory valuation method change.
3. Joint venture accounting: Calculation of profit share for Greaves and Hurst, preparation of joint venture ledger accounts, and advice on forming a partnership, considering financial and operational aspects.
4. Investment analysis: Calculation of earnings per share, price earnings ratio, dividend yield, and dividend cover for LM plc and AB plc. Evaluation of company performance and advice on investment decision based on financial ratios.
5. Cost variance analysis: Preparation of flexed budget, calculation of direct labour variances, analysis of efficiency variance causes, and evaluation of retraining plan for improving labour efficiency.
6. Activity-Based Costing (ABC) application: Calculation of full cost per unit for products using ABC, comparison with direct labour hour rate, and recommendation on product pricing decision. Advantages of using ABC in overhead allocation.