Accounting 9706/13 Oct Nov 2018 | Cambridge AS Level Past Papers With Mark Scheme

1. Accounting errors and adjustments: Materiality in financial statements, effects of adjusting provisions for doubtful debts, calculation of profit or loss on asset disposal, and corrections in control accounts and suspense accounts.
2. Depreciation and asset management: Purpose of charging depreciation, revenue versus capital expenditure, calculation of depreciation and asset sale proceeds, and the effect of asset revaluation on partner capital accounts.
3. Partnership profit distribution: Allocation of partnership profits including salary, interest, and residual profits, treatment of goodwill on partner admission, and profit adjustments for partnership changes.
4. Financial ratios and company performance: Calculation of operating expenses to revenue ratio, return on capital employed (ROCE), and the impact of issuing bonus shares on reserves and gearing.
5. Inventory management and costing methods: FIFO inventory valuation, absorption costing versus marginal costing, and the impact of changes in inventory levels on profits.
6. Break-even analysis and decision-making: Use of break-even charts, calculation of fixed and variable costs, determination of the margin of safety, and selection of product production based on labour hour constraints.