The aim of the examination is to test candidate’s ability to solve arithmetical problems associated with the financial aspects of business/commerce.
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Syllabus |
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1.0 The topics of the syllabuses for First Level Commercial Calculations and Second Level Business Calculations |
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2.0 Simple and Compound interest Simple interest applied to: bill of exchange, treasury bills and hire purchase transaction. Compound interest applied to business and financial situations Present value. |
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3.0 Stock exchanges: Company shares-par & market values, dividends & yields; Debentures-interest rates & yields; Stocks-interest rates & yield; Unit trusts-bid & offer prices; Commission charges |
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4.0 Business ownerships: revenue& costs; breakeven analysis; trading & profit and loss accounts, balance sheets and division of profits. |
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5.0 Profitability & liquidity: Ratios to assess profitability:-profit percentages, rate of stock turnover, expenses ratios and return on capital invested. Ratio to assess liquidity:-working capital(current ratio), acid test(liquid capital ratio), borrowing(gearing ratio),average credit granted ratio and average credit taken ratio |
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6.0 Investment appraisals:-Payback, net present value, average rate of return and internal rate of return. |
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7.0 Bankruptcy:-assets & liabilities, secured and unsecured creditors & dividend |
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8.0 Depreciation of Business Assets:-equal installment method and diminishing balance method. |
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9.0 Index numbers:-price relative & quantity relative, weighted, change of base year |
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Examination Requirements: A 3 hour examination. All questions to be answerd Notes: Graph paper will be provide. Candidates may use programmable or non-programmable calculators provided they give no printout, no word display facilities and are silent and cordless. However, calculators which can be used as data banks may not be used |