Accounting 9706/12 May June 2018 | Cambridge AS Level Past Papers With Mark Scheme

1. Accounting concepts and depreciation: Application of matching and realization concepts, depreciation calculations based on net book value, and profit or loss determination on asset disposal.
2. Adjustments and financial accuracy: Accruals for financial statements, adjustments in provision for doubtful debts, and corrections of sales ledger control account errors.
3. Inventory and cost management: Calculation of stolen inventory cost, incomplete records for calculating owner’s cash drawings, and partnership capital adjustments for revaluation.
4. Share issues and financial ratios: Correct accounting entries for share issuance, funding sources for bonus issues, calculation of operating expenses to revenue ratio, and non-current assets turnover.
5. Costing methods and pricing: Selection of batch costing for specific orders, classification of salesman’s earnings as semi-variable costs, AVCO method for inventory valuation, and overhead absorption rate per guest night in a hotel.
6. Contribution and profit analysis: Contribution to sales ratio for a product, effect of changes in fixed and variable costs on margin of safety, unit cost calculation based on production volume, and reasons for budget preparation in business planning.