Cambridge International AS & A Level Cambridge International AS & A Level
ACCOUNTING 9706/12 ACCOUNTING 9706/12
Paper 1 Multiple Choice May/June 2026 Paper 1 Multiple Choice May/June 2026
1 hour MARK SCHEME
Maximum Mark: 30
You must answer on the multiple choice answer sheet.
You will need: Multiple choice answer sheet
*
Soft clean eraser
Published
Soft pencil (type B or HB is recommended)
INSTRUCTIONS
• There are thirty questions on this paper. Answer all questions.
*
This mark scheme shows the correct answer to each question.
• For each question there are four possible answers A, B, C and D. Choose the one you consider correct
and record your choice in soft pencil on the multiple choice answer sheet. We cannot discuss the mark scheme with schools, and we recommend that schools read the mark scheme
• Follow the instructions on the multiple choice answer sheet. together with the question paper and the Principal Examiner Report for Teachers.
• Write in soft pencil.
• Write your name, centre number and candidate number on the multiple choice answer sheet in the
spaces provided unless this has been done for you.
• Do not use correction fluid or tape.
• Do not write on any bar codes.
• You may use a calculator.
INFORMATION
• The total mark for this paper is 30.
• Each correct answer will score one mark.
• Any rough working should be done on this question paper.
This document has 12 pages. Any blank pages are indicated.
06_9706_12_2026_1.16 This document consists of 3 printed pages.
Cambridge University Press & Assessment 2026 [Turn over
Cambridge University Press & Assessment 2026 [Turn over
, 2 9706/12 Cambridge International AS & A Level – Mark Scheme May/June 2026
PUBLISHED
1 What are advantages to a business of operating as a limited company?
Question Answer Marks
1 no requirement to publish financial statements 1 C 1
2 payment of dividends on shares is discretionary
2 D 1
3 separate legal identity
3 C 1
4 unlimited liability for the debts of the business
4 B 1
A 1 and 2 B 1 and 4 C 2 and 3 D 2 and 4
5 D 1
2 Inventory is valued at the lower of cost and net realisable value. 6 A 1
Which accounting principle is being applied? 7 B 1
A going concern 8 D 1
B matching 9 C 1
C materiality 10 A 1
D prudence 11 A 1
12 B 1
3 The trial balance of a sole trader contained an entry for gross profit.
13 B 1
Which account balances were also included in the trial balance?
14 D 1
A closing capital and closing inventory
15 C 1
B closing capital and opening inventory
16 C 1
C opening capital and closing inventory
17 B 1
D opening capital and opening inventory
18 B 1
4 A company purchased a delivery van for $20 000 at the start of a financial period. Other costs 19 A 1
relating to the van paid during the period are shown:
20 D 1
$
21 C 1
insurance
22 B 1
painting the van with the company logo
23 C 1
repairs and servicing
fuel 0 24 A 1
25 B 1
Which amount is the revenue expenditure relating to the van for the financial period?
26 A 1
A $4000 B $14 000 C $19 000 D $25 000
27 D 1
28 D 1
Cambridge University Press & Assessment 2026 06_9706_12_2026_1.16
Cambridge University Press & Assessment 2026 Page 2 of 3
ACCOUNTING 9706/12 ACCOUNTING 9706/12
Paper 1 Multiple Choice May/June 2026 Paper 1 Multiple Choice May/June 2026
1 hour MARK SCHEME
Maximum Mark: 30
You must answer on the multiple choice answer sheet.
You will need: Multiple choice answer sheet
*
Soft clean eraser
Published
Soft pencil (type B or HB is recommended)
INSTRUCTIONS
• There are thirty questions on this paper. Answer all questions.
*
This mark scheme shows the correct answer to each question.
• For each question there are four possible answers A, B, C and D. Choose the one you consider correct
and record your choice in soft pencil on the multiple choice answer sheet. We cannot discuss the mark scheme with schools, and we recommend that schools read the mark scheme
• Follow the instructions on the multiple choice answer sheet. together with the question paper and the Principal Examiner Report for Teachers.
• Write in soft pencil.
• Write your name, centre number and candidate number on the multiple choice answer sheet in the
spaces provided unless this has been done for you.
• Do not use correction fluid or tape.
• Do not write on any bar codes.
• You may use a calculator.
INFORMATION
• The total mark for this paper is 30.
• Each correct answer will score one mark.
• Any rough working should be done on this question paper.
This document has 12 pages. Any blank pages are indicated.
06_9706_12_2026_1.16 This document consists of 3 printed pages.
Cambridge University Press & Assessment 2026 [Turn over
Cambridge University Press & Assessment 2026 [Turn over
, 2 9706/12 Cambridge International AS & A Level – Mark Scheme May/June 2026
PUBLISHED
1 What are advantages to a business of operating as a limited company?
Question Answer Marks
1 no requirement to publish financial statements 1 C 1
2 payment of dividends on shares is discretionary
2 D 1
3 separate legal identity
3 C 1
4 unlimited liability for the debts of the business
4 B 1
A 1 and 2 B 1 and 4 C 2 and 3 D 2 and 4
5 D 1
2 Inventory is valued at the lower of cost and net realisable value. 6 A 1
Which accounting principle is being applied? 7 B 1
A going concern 8 D 1
B matching 9 C 1
C materiality 10 A 1
D prudence 11 A 1
12 B 1
3 The trial balance of a sole trader contained an entry for gross profit.
13 B 1
Which account balances were also included in the trial balance?
14 D 1
A closing capital and closing inventory
15 C 1
B closing capital and opening inventory
16 C 1
C opening capital and closing inventory
17 B 1
D opening capital and opening inventory
18 B 1
4 A company purchased a delivery van for $20 000 at the start of a financial period. Other costs 19 A 1
relating to the van paid during the period are shown:
20 D 1
$
21 C 1
insurance
22 B 1
painting the van with the company logo
23 C 1
repairs and servicing
fuel 0 24 A 1
25 B 1
Which amount is the revenue expenditure relating to the van for the financial period?
26 A 1
A $4000 B $14 000 C $19 000 D $25 000
27 D 1
28 D 1
Cambridge University Press & Assessment 2026 06_9706_12_2026_1.16
Cambridge University Press & Assessment 2026 Page 2 of 3
