Accounting 9706/22 May June 2018 | Cambridge AS Level Past Papers With Mark Scheme

1. Partnership financials and efficiency analysis: Preparation of income statement, appropriation account, and current accounts for Cherie and Harry. Analysis of non-current asset turnover, trade payables turnover, and strategies to improve inventory turnover.
2. Equity and financial structure: Preparation of the statement of changes in equity for M Limited, understanding capital vs. revenue reserves for funding bonuses, and evaluating benefits and limitations of rights issues for raising capital.
3. Non-current asset transactions: Ledger accounts for plant and machinery cost and depreciation, rationale for using the reducing balance method for depreciation, and accounting treatments for loose tools.
4. Overhead apportionment and pricing strategies: Apportioning budgeted overheads, calculating overhead absorption rates, and determining under- or over-absorption for divisions in SP Limited. Preparation of a customer price quote and analysis of pricing strategy adjustments based on market competition.
5. Budgetary control system benefits and limitations: Identification of benefits such as improved cost control and planning, and limitations including potential inflexibility and reliance on estimates, relevant to operating a budgetary control system in a business context.