Cambridge International AS Level

Accounting 9706

Financial accounting and cost & management accounting, extending at A Level to company accounts, budgeting and investment appraisal.

Exam year

Syllabus version: 2026–2028 syllabusChecked against the Cambridge syllabusExam year 2027 is covered by the 2026–2028 syllabus.

Subject review complete (19 Oct 2026). All 22 AS Level Accounting questions were re-solved and checked against the syllabus and Cambridge mark-scheme conventions, and their auto-marking was tested with correct and incorrect answers.

Paper 1 Multiple Choice28%
Paper 2 Fundamentals of Accounting72%

Original questions22

Topics covered8/8

Papers2

Mock papers2

What is assessed

2 components. Question formats: multiple choice, structured.

Paper 1 Multiple ChoiceAS

1 h30 marks28% of AS

30 compulsory multiple-choice questions on AS content (sections 1 and 2): 22 financial accounting and 8 cost and management accounting.

What the paper looks like

30 one-mark four-option multiple-choice questions in 1 hour, all compulsory: 22 on AS financial accounting and 8 on AS cost and management accounting. Many items are short calculations (depreciation, suspense balances, control account balances, ratios, break-even) with distractors built from common slips such as wrong side of an entry or an irrelevant figure; others use numbered statements with combination options (e.g. 1 and 2 only). Calculator allowed; no evaluation (AO3).

Multiple choiceCalculator permitted

Checked against the Cambridge syllabus

Paper 2 Fundamentals of AccountingAS

1 h 45 min90 marks72% of AS

Four compulsory structured questions on AS content: Q1 (30 marks), Q2 and Q3 (15 marks each) on financial accounting, and Q4 (30 marks) on cost and management accounting.

What the paper looks like

Four compulsory structured questions in 1 hour 45 minutes, answered on the paper. Q1 (30 marks) is usually a full set of financial statements (sole trader or partnership, often from incomplete records) followed by short explanation and an Advise task; Q2 and Q3 (15 marks each) cover topics such as company accounts, ratios, control accounts or error correction; Q4 (30 marks) is cost and management accounting (absorption/marginal costing, break-even, decisions). Sub-parts range from 1 to about 10 marks. Command words: Prepare, Calculate, State, Explain, Advise. Advise/Justify tasks need balanced points and a clear decision.

StructuredCalculator permitted

Checked against the Cambridge syllabus

Assessment overview

From the 2026–2028 syllabus. Checked against the Cambridge syllabus

AS Level

Paper 1Paper 2

Assessment objective	AS Level weighting
AO1 Knowledge and understanding	63%
AO2 Analysis	25%
AO3 Evaluation	12%

Changes in this syllabus version

Version 2 (December 2025) only updates a weblink; no changes to content or assessment.
Content, papers, timings and weightings continue unchanged from the syllabus first examined in 2023; endorsed textbooks remain suitable.
Calculators are essential for all papers; ratio answers must use the formulae in the syllabus appendix.

Command words used in Accounting papers (21)

Advise: recommend a course of action suited to the situation described
Allocate: charge an overhead wholly to the one cost centre that directly incurred it
Analyse: examine in detail, identifying the elements and how they relate
Apportion: share an overhead that cannot be traced to one centre among the centres using it, on a fair basis
Assess: reach an informed judgement
Calculate: work out an answer from the given figures
Comment: give a reasoned opinion
Compare: point out similarities and/or differences
Contrast: point out differences
Define: state the exact meaning
Describe: set out the main features or characteristics
Discuss: write in depth and in an organised way about an issue
Evaluate: judge or work out the quality, importance, amount or value
Explain: give reasons or purposes and show how things are linked, with supporting evidence
Identify: name, pick out or recognise
Justify: back up a case with evidence or argument
Prepare: set out information in an appropriate format
Reapportion: recharge service-centre overheads to other centres on a suitable basis
Reconcile: work through two sets of figures to show they agree
State: express clearly and briefly
Suggest: apply knowledge to put forward one of several possible valid proposals

Examiner guidance from recent reports (14)

Reconciliation and verification. In control account questions decide first whether each item belongs in the account at all: cash sales, allowance changes and similar items are often included as distractors. Bring opening and closing balances down on the correct side.

Reconciliation and verification. When correcting errors, work out each error’s effect on the debit and credit totals separately before netting. Errors of principle, omission and commission do not touch the suspense account.

Preparation of financial statements (AS). Use current international terminology (revenue, cost of sales, profit from operations, trade receivables) and write labels in full; abbreviations and missing dates cost presentation marks.

Preparation of financial statements (AS). Check the redemption date of debentures: an amount repayable within the next year belongs in current liabilities, not non-current liabilities.

Preparation of financial statements (AS). A bonus issue moves reserves into share capital and leaves total equity unchanged; a rights issue brings in cash. Know which reserves can and cannot fund a bonus issue.

Analysis and communication of accounting information (AS). Use only the formulae in the syllabus appendix, give the answer in the stated form (%, :1, days, times) and round day-based ratios up to the next whole day when asked.

Analysis and communication of accounting information (AS). When discussing ratios, explain what the movement means for profitability, liquidity or cash flow; simply stating that a ratio went up or down earns little credit.

Accounting for non-current assets. When an asset is sold part-way through a year, split the depreciation calculation into periods before and after the disposal and include any part-exchange allowance as the disposal proceeds.

Traditional costing methods. Learn the standard layout of a marginal costing statement (revenue, variable costs, contribution, fixed costs, profit). For decision questions, compare only the relevant extra revenue and costs.

Traditional costing methods. State the basis of each overhead absorption rate (per machine hour or per direct labour hour) and give the rate to the requested decimal places; the basis is part of the answer.

Preparation of financial statements (A Level). For manufacturing businesses, label the cost of direct materials consumed and prime cost clearly, and remember that only the change in the unrealised profit provision goes to the statement of profit or loss.

Preparation of financial statements (A Level). On a partner’s admission or retirement, goodwill is credited in the old profit-sharing ratio and written off in the new ratio; double-check the direction of each entry.

Regulatory and ethical considerations. Name the relevant IAS and then apply it to the figures: for inventory compare cost with net realisable value item by item or category by category, not in total.

Budgeting and budgetary control. Build cash budgets from the production or purchases schedule where the question requires it, track the timing lag on receipts and payments, and keep workings for each month.

Topic map

Practice types

Free sample questions

Which feature applies to a private limited company but not to a partnership?

Which feature applies to a private limited company but not to a partnership?

The owners may have to use personal assets to settle business debts.
The business has a legal identity separate from its owners.
Its shares can be offered for sale to the general public.
Profits are shared according to the Partnership Act 1890 if there is no agreement.

Answer: B. The business has a legal identity separate from its owners.

A company is a separate legal entity, so it owns assets and owes debts in its own name and shareholders have limited liability. Unlimited liability (A) and the Partnership Act (D) relate to partnerships; offering shares to the public (C) is only possible for a public limited company.

A business buys a stapler for $18. It is expected to last for five years, but the cost is charged in full as…

A business buys a stapler for $18. It is expected to last for five years, but the cost is charged in full as office expenses in the year of purchase.
Which accounting concept is being applied?

consistency
going concern
materiality
money measurement

Answer: C. materiality

The amount is too small to influence users of the accounts, so treating it as revenue expenditure rather than capitalising and depreciating it is justified by the materiality concept.

FAQs

Are these official 9706 past-paper questions?

No. They are original questions written to match the Accounting syllabus topics. Official past papers are available to schools through Cambridge.

Why choose an exam year?

Cambridge updates syllabuses periodically. Your exam year selects the matching configuration so topics and components follow the right version.

How do AS and A Level differ here?

Both pathways share code 9706. AS pages include AS topics and components only; A Level pages add the A Level content and papers.

Is a calculator allowed?

In this configuration a scientific calculator is permitted for the listed papers. Check your syllabus for the exact rule.