Accounting 9706/32 March 2020 | Cambridge AS Level Past Papers With Mark Scheme

1. Manufacturing and income statement preparation: Components of a manufacturing account, finished goods valuation, and income statement structure for the year.
2. Inventory valuation and unrealized profit: Accounting for finished goods, unrealized profit treatment in income statements, and financial positions based on accounting concepts.
3. Goodwill calculation and partnership changes: Valuation of goodwill, changes in partnership capital accounts, and implications of not maintaining goodwill in accounting records.
4. Ratio analysis and financial statement interpretation: Earnings per share, price earnings ratio, dividend cover, dividend yield, and financial impact of legal liabilities.
5. Budget preparation and material costing: Production and purchases budgets, cost of direct materials, FIFO and AVCO methods, and budget relevance in economic variability.
6. Investment appraisal and decision-making: Payback period, net present value, internal rate of return, tariff impact on investment, and rationale for investment metrics like payback period and NPV.