Accounting 9706/31 May June 2019 | Cambridge AS Level Past Papers With Mark Scheme

1. Financial adjustments and depreciation: Revaluation of land, provision for doubtful debts, insurance prepayments, depreciation methods for buildings, plant, machinery, and vehicles.
2. Partnership formation: Revised asset valuations, capital account transfers, calculation of additional cash contributions, and implications of merging sole trader businesses into a partnership.
3. Consignment accounting: Transfer pricing, cost accounting for consignments, handling transportation costs, commission, and customs duties, and evaluating consignment arrangements.
4. Ratio analysis and financial performance: Calculation of market price, earnings per share, price earnings ratio, dividend cover, comparison of financial ratios between competing companies, and investment decision-making criteria.
5. Budget variances and cost control: Flexed budget preparation, variance analysis for materials, labor, and overheads, understanding capacity variances, and strategies to mitigate rising labor costs.
6. Investment appraisal: Accounting rate of return (ARR), payback period, net present value (NPV), internal rate of return (IRR), comparison of investment options, and decision-making based on financial viability and capital constraints.