Ib G Jun17 Accn4 Mark Scheme [updated] (SECURE)

This code breaks down as:

Coherent, logical, and balanced assessment. You must contextualize both financial and non-financial information to reach an informed decision 4. Recommended Resources ib g jun17 accn4 mark scheme

How to Use the "ib g jun17 accn4 mark scheme" for Revision

Now that you understand what the document contains, here is a step-by-step strategy to use it effectively for your own exam preparation. This code breaks down as: Coherent, logical, and

Financial advice to directors regarding machinery purchases. Standard Costing & Variance Analysis: Rounding errors on ratios: The mark scheme states

Question 4: Ratio Analysis and Interpretation (approx 20 marks)

Typical data: Income statement, statement of financial position, and industry averages.

1. Rounding errors on ratios: The mark scheme states "Accept 1 or 2 decimal places – do not penalise rounding unless inconsistent." Always show one more decimal than required.
2. Sign convention in cash flow: Many students added depreciation instead of adding it back. The mark scheme says "Add back non-cash items (depreciation, loss on sale). Subtract (profit on sale)."
3. Partnership dissolution: The mark scheme shows that students frequently forgot the "Realisation account" double entry. "No credit for cash distribution without Realisation account totals."
4. Inventory valuation: In incomplete records, students often used closing inventory from trial balance without adjusting for opening inventory in cost of sales.
5. Lack of units on ratios: "Mark for ratio only if expressed as :1, % or days. A naked number (e.g., '2.5') gets no mark."

• Scenario: Cash book shows bank receipt £4,750 and discount allowed £250 for Southgate Ltd. Student posts both to Southgate account but omits a narrative for one entry.
• Mark scheme application: Marks for amounts posted (accuracy) + method mark for showing transfer from cash book to ledger + OF for correct closing balance only if the closing balance is correctly evidenced and labelled. Missing a narrative costs a minor mark; mislabelling balance (e.g., “balance” only) loses the OF.

Gripping write-up: “IB G Jun17 ACCN4 Mark Scheme”

June 2017’s ACCN4 paper — a heady, exacting test of advanced management accounting — reads like a courtroom drama for numbers. The mark scheme is the prosecuting brief: clinical, uncompromising, and designed to separate careful forensic accountants from those who merely bluff confidence with arithmetic. Below I unpack its logic, expose the common traps, and give short examples to show how marks are really won (or lost).

• 1 mark – Heading: "Cash Flow Statement for year ended 30 June 2017".
• 3 marks – Operating activities: correct starting point (operating profit), adding depreciation, subtracting profit on sale.
• 4 marks – Working capital changes: (Dec/Inc in inventory, receivables, payables).
• 3 marks – Investing activities: Purchase of non-current assets (outflow), sale proceeds (inflow).
• 2 marks – Financing activities: Issue of shares, repayment of loans.
• 2 marks – Net increase/decrease in cash and overdraft.