Accounting 9706/11 May June 2018 | Cambridge AS Level Past Papers With Mark Scheme

1. Accounting concepts and errors: Analysis of accounting concepts such as matching, prudence, realisation, and substance over form. Identification of the impact of errors in inventory, provision for doubtful debts, and sales ledger control accounts on financial statements.
2. Depreciation and asset disposal: Straight-line depreciation calculations, impact of residual values on depreciation, and effects of asset disposal on profits.
3. Partnership and company finance: Treatment of partnership revaluation, effects of share premium, capital reserves, and bonus issues on financial positions. Analysis of return on capital employed (ROCE) and current ratio.
4. Costing methods and inventory: Comparison of marginal and absorption costing, overhead absorption rates, and inventory costing using AVCO method. Calculation of cost per unit and effects on profit from changes in production methods.
5. Budgeting and cost behavior: Reasons for budget preparation, margin of safety analysis, and impact of changes in unit variable cost and fixed costs on break-even points. Analysis of cost behavior patterns such as variable, fixed, and stepped costs in a business environment.