Accounting 9706/33 Oct Nov 2017 | Cambridge AS Level Past Papers With Mark Scheme

1. Non-profit financial management: Preparation of income and expenditure account, statement of financial position, and discussion on life membership accounting treatment. Evaluation of investment options based on fixed interest returns versus rental income from a new boathouse.
2. Partnership acquisition and capital accounts: Calculation of closing entries for partners' capital accounts, preparation of equity and reserves post-acquisition for C Limited, and benefits of receiving ordinary versus cumulative preference shares.
3. Consignment and cost management: Ledger account preparation for consignment transactions, analysis of increased import duties on profit per container, and exclusion of advertising costs from inventory valuation.
4. Corporate finance and expansion: Explanation of share premium, calculation of debenture issue for financing, preparation of statement of changes in equity, and recommendation on financing future expansion with loans or rights issues.
5. Cost variances and overhead absorption: Calculation of direct labour rate, efficiency, fixed overhead expenditure, and volume variances. Reconciliation of standard and actual production costs, and advice on absorbing fixed overheads based on production units.
6. Cash budgeting and working capital: Preparation of cash budget, analysis of working capital management, and preparation of budgeted income statement. Assessment of benefits of preparing a cash budget and evaluation of working capital strategies.