Accounting 9706/21 May June 2019 | Cambridge AS Level Past Papers With Mark Scheme

1. Double entry system advantages: Improved accuracy in financial records, fraud prevention, and easier preparation of financial statements.
2. Financial performance of a partnership: Calculation of profit/loss on motor vehicle disposal, depreciation charges, income statement preparation, and the rationale for doubtful debt provisions.
3. Share capital and equity changes: Rights issue, bonus issue, interim dividends, and revaluation reserve impacts on the statement of changes in equity.
4. Break-even analysis and profit optimization: Identification of break-even point, allocated fixed costs, margin of safety, and profit from sales charts. Impact of cost and pricing changes on product profitability, break-even point, and margin of safety for product Wye.
5. Recommendations for business changes: Analysis of whether to proceed with pricing, labor, material quality, advertising, and sales team bonus adjustments based on their effects on profit, break-even point, and margin of safety.
6. Future planning advantages: Risk mitigation, resource allocation, strategic decision-making, and enhanced financial forecasting.