Accounting 9706/32 Oct Nov 2017 | Cambridge AS Level Past Papers With Mark Scheme

1. Non-profit organization accounting: Calculation of restaurant profit, analysis of gross margin differences, improvement strategies, and accounting treatment for life membership subscriptions.
2. Changes in equity and financial reporting: Preparation of statement of changes in equity, treatment of final dividend, and implications of purchasing a new factory on financial statements and shareholder confidence.
3. Inventory valuation and audit adjustments: Explanation of stewardship, calculation of closing inventory and gross profit, analysis of inventory discrepancies, and recommendation on inventory valuation method for financial statements.
4. Financial ratios and debenture issue impact: Calculation of income gearing, dividend cover, and price earnings ratios. Assessment of new debenture issue on financial ratios and discussion of disadvantages of debenture issuance.
5. Investment appraisal for machinery: Calculation of NPV, payback period, and unit production expectations for a replacement machine, with a recommendation based on financial analysis.
6. Budget preparation and cash flow management: Preparation of cash budget, budgeted income statement, and reconciliation of profit to net cash. Advice on the purchase of a new computer system based on cash flow implications.