Accounting 9706/23 Oct Nov 2018 | Cambridge AS Level Past Papers With Mark Scheme

1. Share capital and equity adjustments: Recording of rights issue of shares, understanding of share premium entries, dividend recording, general reserve creation, and the impact of long-term bank loans on the statement of changes in equity.
2. Non-current assets valuation: Calculation of net book value for non-current assets, preparation of the statement of financial position, and advice on adjusting depreciation rates for company assets.
3. Partnership dissolution and settlement: Preparation of realization account, calculation of payments to partners, identification of partnership agreement terms, and rationale for separate capital and current accounts for partners.
4. Ratio analysis and financial performance: Explanation of gross margin vs. mark-up, calculation of key financial ratios (gross margin, expenses to revenue, profit margin), and exploration of factors influencing changes in gross margin.
5. Cost-volume-profit (CVP) analysis: Calculation of budgeted contribution, margin of safety, impact of changes in production levels on profitability, and evaluation of a sales manager’s proposed plan over multiple years using financial and non-financial factors.