Accounting 9706/23 Oct Nov 2019 | Cambridge AS Level Past Papers With Mark Scheme

1. Income statement preparation: Revenue, cost of sales, gross profit, administrative expenses, distribution costs, profit from operations, finance costs, profit for the year.
2. Statement of financial position: Inventory valuation, adjustments for damaged items, depreciation methods for motor vehicles and office equipment, accrued and prepaid expenses, provision for doubtful debts.
3. Non-current asset transactions: Asset disposal impacts on financial statements, reducing balance depreciation method, revaluation method for asset valuation.
4. Ratio analysis: Gross margin, profit margin, rate of inventory turnover, current ratio, liquid (acid test) ratio, return on capital employed (ROCE), and their implications on business performance.
5. Overhead allocation and absorption: Differentiating allocation and apportionment, re-apportionment of service department costs, calculating overhead absorption rates for production departments.
6. Budgetary control and departmental coordination: Quotation preparation for product pricing, achieving target gross margin, cash discount calculation, and the impact of budgetary control on departmental performance and profitability.