Marking Scheme
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CAMBRIDGE INTERNATIONAL EXAMINATIONS
GCE Advanced Level
MARK SCHEME for the October/November 2012 series
9706 ACCOUNTING
9706/41 Paper 4(Problem Solving – Supplement), maximum raw mark 120
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the details of the discussions that took place at an Examiners’ meeting before marking began, which would have considered the acceptability of alternative answers. Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for Teachers.
Cambridge will not enter into discussions about these mark schemes.
Cambridge is publishing the mark schemes for the October/November 2012 series for most IGCSE, GCE Advanced Level and Advanced Subsidiary Level components and some Ordinary Level components.
www.maxpapers.com
Page 2 1 Mark Scheme GCE A LEVEL – October/November 2012 Syllabus 9706 Paper 41 [2] [2] [2] (a) (i) 5.04 times (ii) 35.35 days (iii) 28.16 days
(b) The company gives more credit to customers than it takes. (1)of. It is more desirable to take more credit from suppliers. (1) This could have cash flow implications. (1) [Max 2] (c) (i) 50 000 (1) – 10 000 (1) – 8000 (1) = 32 000 (ii) 26 000 (1) – 200 (1) = 25 800 (iii) Year Discount factor Cash Flow $ 1 2 3 4 0.909 0.826 0.751 0.683 9 681 9 080 8 122 6 589 (1) (1) (1) (1) $ 8 800 7 500 6 100 4 500 26 900 (1)of (1)of (1)of (1)of (1)of [9] (d) (i ) $26 900 (ii) $26 900 (2)of (2)of [2] [2] [2] [2] [2] (2) (2) (2) (2) (2) Discounted cash flow [3] [2]
(e) (i) 32 000 (1) of – 26 900 (1) of = 5100 (ii) 420 800 (1) – 5100 (1) of = 415 700 (iii) 10% (2) (f) (i) Technological change Economic downturn Damage to asset Fall in market value Change in demand (ii) IAS36 (g) Legal costs Architect’s fees Any reasonable answer accepted
[Max 4] [2]
[2]
CAMBRIDGE INTERNATIONAL EXAMINATIONS
GCE Advanced Level
MARK SCHEME for the October/November 2012 series
9706 ACCOUNTING
9706/41 Paper 4(Problem Solving – Supplement), maximum raw mark 120
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the details of the discussions that took place at an Examiners’ meeting before marking began, which would have considered the acceptability of alternative answers. Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for Teachers.
Cambridge will not enter into discussions about these mark schemes.
Cambridge is publishing the mark schemes for the October/November 2012 series for most IGCSE, GCE Advanced Level and Advanced Subsidiary Level components and some Ordinary Level components.
www.maxpapers.com
Page 2 1 Mark Scheme GCE A LEVEL – October/November 2012 Syllabus 9706 Paper 41 [2] [2] [2] (a) (i) 5.04 times (ii) 35.35 days (iii) 28.16 days
(b) The company gives more credit to customers than it takes. (1)of. It is more desirable to take more credit from suppliers. (1) This could have cash flow implications. (1) [Max 2] (c) (i) 50 000 (1) – 10 000 (1) – 8000 (1) = 32 000 (ii) 26 000 (1) – 200 (1) = 25 800 (iii) Year Discount factor Cash Flow $ 1 2 3 4 0.909 0.826 0.751 0.683 9 681 9 080 8 122 6 589 (1) (1) (1) (1) $ 8 800 7 500 6 100 4 500 26 900 (1)of (1)of (1)of (1)of (1)of [9] (d) (i ) $26 900 (ii) $26 900 (2)of (2)of [2] [2] [2] [2] [2] (2) (2) (2) (2) (2) Discounted cash flow [3] [2]
(e) (i) 32 000 (1) of – 26 900 (1) of = 5100 (ii) 420 800 (1) – 5100 (1) of = 415 700 (iii) 10% (2) (f) (i) Technological change Economic downturn Damage to asset Fall in market value Change in demand (ii) IAS36 (g) Legal costs Architect’s fees Any reasonable answer accepted
[Max 4] [2]
[2]