Accounting 9706/22 March 2020 | Cambridge AS Level Past Papers With Mark Scheme

1. Income statement preparation for S Limited: Inventory valuation adjustments, administrative expense accruals, revenue recognition, cost of damaged goods, and debenture issuance effects.
2. Equity changes and dividends: Ordinary share transactions, bonus issue implications, interim and final dividend allocations, and flexible reserves maintenance.
3. Depreciation causes and accounting concepts: Causes include wear and tear, obsolescence, and usage. Concepts involve accrual and matching principles.
4. Control accounts advantages: Enhanced accuracy in financial tracking, fraud detection, and simplified financial reporting.
5. Overhead allocation and apportionment: Differentiation between allocation to direct cost centers and apportionment to indirect cost centers, service department cost re-apportionment, and overhead absorption rate calculation.
6. Special order pricing and acceptance: Direct material and labor cost calculation, overhead allocation, profit margin determination, and customer offer evaluation.