9706_w23_qp_31

Cambridge International AS & A Level * 6 4 0 0 2 2 1 2 9 1 * ACCOUNTING 9706/31 Paper 3 Financial Accounting October/November 2023 1 hour 30 minutes You must answer on the question paper. You will need: Insert (enclosed) INSTRUCTIONS ● Answer all questions. ● Use a black or dark blue pen. ● Write your name, centre number and candidate number in the boxes at the top of the page. ● Write your answer to each question in the space provided. ● Do not use an erasable pen or correction fluid. ● Do not write on any bar codes. ● You may use an HB pencil for any diagrams, graphs or rough working. ● You may use a calculator. ● International accounting terms and formats should be used as appropriate. ● You should show your workings. INFORMATION ● The total mark for this paper is 75. ● The number of marks for each question or part question is shown in brackets [ ]. ● The insert contains all of the sources referred to in the questions. This document has 12 pages. Any blank pages are indicated. DC (RW) 316845/3 © UCLES 2023 [Turn over

Cambridge International AS & A Level * 6 4 0 0 2 2 1 2 9 1 * ACCOUNTING 9706/31 Paper 3 Financial Accounting October/November 2023 1 hour 30 minutes You must answer on the question paper. You will need: Insert (enclosed) INSTRUCTIONS ● Answer all questions. ● Use a black or dark blue pen. ● Write your name, centre number and candidate number in the boxes at the top of the page. ● Write your answer to each question in the space provided. ● Do not use an erasable pen or correction fluid. ● Do not write on any bar codes. ● You may use an HB pencil for any diagrams, graphs or rough working. ● You may use a calculator. ● International accounting terms and formats should be used as appropriate. ● You should show your workings. INFORMATION ● The total mark for this paper is 75. ● The number of marks for each question or part question is shown in brackets [ ]. ● The insert contains all of the sources referred to in the questions. This document has 12 pages. Any blank pages are indicated. DC (RW) 316845/3 © UCLES 2023 [Turn over

2 1 Read Source A in the insert. (a) Calculate the revised profit for the year after making the necessary amendments for matters 1 to 5. ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ............................................................................................................................................. [7] Additional information When the draft financial statements were prepared, the market price of one share in CB plc was $3.90. The directors calculated the price/earnings ratio at this time using the draft profit figure. Amendments were made to the draft financial statements as in part (a) . When the final financial statements were published, the market price of one share was $3.10. © UCLES 2023 9706/31/O/N/23

2 1 Read Source A in the insert. (a) Calculate the revised profit for the year after making the necessary amendments for matters 1 to 5. ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ............................................................................................................................................. [7] Additional information When the draft financial statements were prepared, the market price of one share in CB plc was $3.90. The directors calculated the price/earnings ratio at this time using the draft profit figure. Amendments were made to the draft financial statements as in part (a) . When the final financial statements were published, the market price of one share was $3.10. © UCLES 2023 9706/31/O/N/23

3 (b) Calculate, to two decimal places, the change between the price/earnings ratio which the directors calculated and the price/earnings ratio based on the published financial statements. ratio based on published financial ratio calculated by directors statements ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... Change ................................................................................................................................. [5] (c) Advise the directors whether or not they should be concerned about the change in the price/earnings ratio. Justify your answer. ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ............................................................................................................................................. [4] [Turn over © UCLES 2023 9706/31/O/N/23

3 (b) Calculate, to two decimal places, the change between the price/earnings ratio which the directors calculated and the price/earnings ratio based on the published financial statements. ratio based on published financial ratio calculated by directors statements ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... ...................................................................... Change ................................................................................................................................. [5] (c) Advise the directors whether or not they should be concerned about the change in the price/earnings ratio. Justify your answer. ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ................................................................................................................................................... ............................................................................................................................................. [4] © UCLES 2023 9706/31/O/N/23 [Turn over