Accounting 9706/13 Oct Nov 2017 | Cambridge AS Level Past Papers With Mark Scheme

1. Prudence concept and asset valuation: Avoiding overstated assets, calculating profit or loss on disposal, and recording revaluation of land and buildings.
2. Error corrections and profit adjustments: Correction of book-keeping errors, impact on gross profit, and use of suspense accounts to rectify discrepancies.
3. Partnerships and capital accounts: Effects of admitting a new partner on capital accounts, profit-sharing adjustments, and calculation of final capital balances after partnership changes.
4. Financial statement components: Treatment of dividends in equity statements, calculation of total equity, and allocation of retained earnings and share premium.
5. Inventory valuation and cost analysis: FIFO and AVCO methods in rising price scenarios, calculation of overhead absorption rates, and analysis of direct and indirect costs in production.
6. Break-even analysis and cost management: Calculation of margin of safety, determining required sales for target profit, and analysis of fixed and variable costs in pricing strategies.