Accounting 9706/22 Oct Nov 2019 | Cambridge AS Level Past Papers With Mark Scheme

1. Financial statement preparation: Income statement formulation with revenue, cost of sales, gross profit, administrative expenses, distribution costs, and profit analysis.
2. Liquidity analysis and turnover ratios: Calculation of inventory turnover, trade receivables turnover, trade payables turnover, and liquidity assessment based on financial ratios.
3. Partnership restructuring and capital accounts: Admission of a new partner, revaluation of non-current assets, goodwill adjustments, and impact on partnership capital accounts.
4. Overhead absorption and marginal costing: Allocation of maintenance department costs, calculation of overhead absorption rates, and decision-making between absorption and marginal costing for product pricing.
5. Decision-making for product orders: Evaluation of a new customer order using profit margin requirements, variable cost analysis, and consideration of financial and non-financial factors.
6. Supplier selection considerations: Factors for changing suppliers including cost, quality, reliability, and relationship management in business operations.