Accounting 9706/11 Oct Nov 2018 | Cambridge AS Level Past Papers With Mark Scheme

1. Accounting concepts and treatments: Business entity, depreciation rationale, accounting for owner drawings, and rent and rates adjustments in financial statements.
2. Error correction and financial statement adjustments: Sales journal undercast, irrecoverable debts, rent and rates expenses, and inventory valuation for goods on sale or return.
3. Capital and reserves analysis: Capital calculation from business inception, partnership adjustments for revaluation, and residual profit sharing in partnerships.
4. Financial statement components: Differentiation of income statement items, liquid (acid test) ratio improvements, and inventory turnover rates.
5. Costing and pricing strategies: FIFO inventory valuation, calculation of total variable costs, absorption costing, and overhead analysis.
6. Break-even and contribution analysis: Margin of safety, contribution to sales ratio, and optimal product mix determination under labor constraints.
7. Budgeting and financial planning: Use of budgets for strategic planning, comparison of budgets with actual performance, and financial management improvements.