7020 COMMERCE AND FINANCE

1 Introduction
7020 Commerce and Finance is intended to serve the needs of candidates for the ‘A’ level examination in
Commerce and Finance organized by the Cameroon GCE Board. The subject is divided into two distinct
sections of Commerce and Finance. The section on commerce covers all the basic commercial activities in a
modern free enterprise economy. It is principally designed to explain the activities performed by retailers,
wholesalers, importers, and exporters in the distribution and exchange of goods. The role of bankers, insurance
companies and transport organizations as aids in this endeavor are fully discussed. While the section on finance
covers the basic features of the three interrelated areas; money and capital markets, investment decisions and
financial decisions within the firm. A pass in ‘O’ level Commerce (or Economics) and Business Mathematics are
considered pre-requisites for a mastery of this syllabus. However, candidates should take note that the format of
the examination questions will be subject to changes in accordance with modern developments.
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2 Progression Opportunities
2.1 Progression Opportunities
The subject is intended to serve the needs of candidates:
 Prerequisites requirements into schools of business in higher institutions of learning.
 Prepare for higher examinations in commerce and finance of the London Chamber of Commerce and the
Royal Society of Arts.
 Students working for examinations involving commerce, finance and business administration set by
accountancy, secretarial, banking and insurance bodies.

2.2 Career Prospects

Holders of the ‘A’ level certificate in Commerce and Finance usually have an advantage over others to be
employed in:
 Financial institutions including banks, insurance companies, financial consultancy firms etc.
 Industries and retail firms
 Brokerage houses either as sales or security analyst as well as.
 Government operations.
 Self employment

3 Aims:
At the end of this course, the candidates should be able to:
 Appraise all aspects of commercial activities as an integrated system.
 Be acquainted with commercial and financial knowledge needed for the domestic and foreign business
environment.
 Know the various sources of finance, the procedure and consequences of each type to a business.
 Have a good understanding of the large and complex financial environment in which financial managers
and investors operate.
 Have basic understanding of how to use ratio analysis for evaluating performance.
 Have a reasonable good idea on interpreting financial statements.
 Be able to evaluate investment opportunities and
 Be conversant with risk control instruments used in the global financial markets.

4 Assessment Objectives (OA)

In keeping with the Cameroon GCE Board policy, the assessment objectives at this ‘A’ level will emphasis on
analysis, synthesis and the evaluative cognitive skills of the candidates. That is the candidates should be able to
break down a mass of information into component parts, build them into coherent pieces and draw conclusions
based on the available information. Here students should be able to:
 a) Analyze, categorize, compare and contrast.
b) In addition students should be able to originate, integrate and combine ideas into a product, plan or
proposal (Synthesize).
c) In terms of Evaluation, the student should be able to appraise, assess, criticize as well as draw
justifications from an idea.

5 Cross Curricula Demands of the Subject

A pass in ‘O’ level Commerce (or Economics) and Business mathematics as well as a reasonable good idea on
related subjects such as Economics, Accounting, and management are considered pre-requisites for a mastery of
this syllabus.
Candidates may be required to:
a) Carry out simple statistical calculations involving: averages, mean, fractions, ratios, percentages etc.
b) Use mathematical formulas to determine future and present values, time periods and the internal rates of
return of investments.
c) Plot and interpret graphs.
d) Extract materials presented in a tabula form.
e) Have a good idea on the use of calculators.

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6 Structure of the Examination

The examination consists of three papers as follows:
Paper 1 shall cover the entire Syllabus and shall also test all the cognitive skills provided for in the syllabus
(Blooms taxonomy). The relative importance of any skill to this level is reflected by the number of questions
shown in the table of Guide below.

Paper 2 shall be essay questions, testing principles in an in-depth manner. The Knowledge skill on Blooms
taxonomy shall not be specifically tested in this paper, because mastery of this skill shall be subsumed in the
demonstration of the other five skills.

Paper 3 shall deal with practical cases, testing application of the principles to real-life or simulated real-life
situations.

7 Guide

Number of
Type of Dura- Raw
Paper Weighting Table of Difficulty Level Remarks
question tion Marks
specification
50 Questions
covering the
entire syllabus:
1-5 on Calculators,
MCQ
comprehension, Mathematical
covering
6-25 on 30 one-star questions sets and
the 1 ½
1 100 30% Application, 15 two-star questions tables/formulae
whole hours
26-35 on 5 three-star questions booklet (from
syllabus
Analysis GCEB) shall be
content
36-45 on authorized.
synthesis
46-50 on
Evaluation
Six essay 3 one-star questions 1. The following
3
2 Essay 100 30% questions for 2 two-star questions task verbs shall
hours
candidates to 1 three-star question not be used in
 Number of
Type of Dura- Raw
Paper Weighting Table of Difficulty Level Remarks
question tion Marks
specification
answer any four. this paper:
NOTES: “Define”,
1. The purpose of “State”,
this section is to “Name”, “List”,
test the “Outline”, “Give
candidate’s the meaning of”,
ability to select “Write short
relevant material, notes on”
organize and 2. Questions
present in a Must cover at
logical manner least 80% of the
2. One question syllabus content
may require the 3. Calculators,
candidate to draw Mathematical
from more than sets and
one topic of the tables/formulae
syllabus and to booklet (from
demonstrate GCEB) shall be
more than one authorized.
cognitive skill on
Bloom’s
taxonomy.
1. The following
task verbs shall
not be used in
Five case-study
this paper:
or problem-
“Define”,
solving questions
“State”,
for candidates to
“Name”, “List”,
answer any four.
2 one-star questions “Outline”, “Give
NOTE:
2 two-star questions the meaning of”,
One question
Case 1 three-star question “Write short
may require the
Study& 3 notes on”
3 100 40% candidate to draw Download more GCE
Problem- hours 2. Questions
solving
from more than resources at Must cover at
one topic of the https://www.meetlearn.com least 80% of the
syllabus and to
syllabus content
demonstrate
3. Calculators,
more than one
Mathematical
cognitive skill on
sets and
Bloom’s
tables/formulae
taxonomy.
booklet (from
GCEB) shall be
authorized.
* Moderate questions that can be answered by any candidate who has covered the Syllabus.
* * Above average questions.
* * * Questions that can be answered by candidates with outstanding ability.

8 Syllabus Content for 7020 Commerce and Finance

PART ONE: COMMERCE

S/N TOPIC Content Extent of mastery and other relevant
information
1. NATURE AND 1.1. Brief history of commerce At the end of this chapter, candidates should be
SCOPE OF 1.2. Scope of commerce. able to:
COMMERCE 1.3. Wants and Needs of mankind.  Define commerce
1.4. Satisfying human wants. – direct  Understand the objectives of commerce
and indirect production  Explain and Identify human wants and needs.
1.5. Factors of production  Explain the factors of production
1.6. Specialisation and growth.  Differentiate the different divisions of commerce.
1.7. Division of commerce.  Identify and explain the functions of commerce in
1.8. Functions of commerce. an economy.
2. BUSINESS UNITS 2.1. The sole proprietor Candidates will be assessed on their abilities to:
2.1.1. Suitability of sole the Explain the concept of the sole proprietorship.
proprietorship  Examine the features and reasons for the
2.2. Partnership continuous existence of the sole proprietorship.
2.3. Companies.  Identify and justify the businesses in which the
2.3.1. Principles sole proprietorship is appropriate
2.3.2. Types  Examine the types of partnerships, Types of
2.3.3. Legal aspects. partners, Incoming and retiring partners,
2.3.4. Creation of businesses in Dissolution of partnership, Legal aspects of
Cameroon partnerships (Rights, Duties and Authority of
2.4. Public enterprises. partnership).
2.4.1. Public corporation  Explain why partnership is not common in
2.4.2. Nationalization/Privatisation Cameroon.
/Indigenization.  Identify businesses in which the partnerships
2.4.3. Public enterprises in business is appropriate.
Cameroon.  Explain the principles of companies in relation
2.5. Co-operatives societies. to formation, features, advantages
2.6. Forms of industrial combination disadvantages.
of firms.  Compare and contrast the different types of
Download more GCE resources companies (private, public, limited by shares as
at https://www.meetlearn.com well as limited by guarantee etc.)
 Discuss the legal aspects relating to formation,
management and liquidation of companies
or Termination of membership
examine the OHADA requirements for the creation
of a business in Cameroon including (Shareholders,
Articles of association, Registered office, Duration,
Contributions, Rights and obligations attached to
shares, Registration)
 Justify government ownership of enterprises,
Municipal undertakings
 Examine the Organisation and control of public
enterprises identify the sources of Finance to
public enterprises.
 Justify the government policies in relation to
Nationalization, Privatisation and
Indigenization.
 Compare and contrast public corporations and
private firms.
 Explain the concept of corporative societies in
S/N TOPIC Content Extent of mastery and other relevant
information
relation to History, movements, Types, Finance
Internal management and organizational
structure.
 Justify and examine the following types of
industrial combinations:
Mergers, takeover bids, holding company,
Cartel, Syndicates, Integration (amalgamation)
and reconstruction.
3. INTERNAL 3.1. The vital importance of Candidates will be assessed on their abilities to:
TRADE:THE distributive trade.  Assess the relevance of distributive trade to:
DISTRIBUTIVE 3.2. Channel of distribution. manufacturers, consumers, the economy etc
TRADE 3.3. The retail trade –  Design distributive channels,
3.3.1. The changing pattern of retail  Examine the Factors to be considered in selecting
trade. a distributive channel and justify the reasons for
3.4. The wholesale trade: the elimination and survival of middlemen
3.4.1. The warehouse:  Analyse the functions and operations of retail
trade.
 Describe the various types of wholesale retailing-
including; multiple stores, department stores,
supermarkets, hypermarkets etc.
 Examine the features and types of wholesale
trade.
 Separate the Contributions of the wholesaler to
the; retailers, manufacturers and to the economy.
 Describe the features of warehousing in relation
to; Usefulness, Locating, types (bonded, state,
public, manufacturer, private etc.)
 The Automated warehouse

4. CONSUMER 4.1. Consumer legislation Candidates will be assessed on their abilities to:
LEGISLATION 4.1.1. Consumer legislation in  Define the concept of consumer protection
AND CREDIT IN Cameroon.  Examine the concept of Consumerism, rights of
BUSINESS. 4.2. CONSUMER CREDIT – consumers, reason for consumer protection,
4.2.1. Basis for credit sales instruments or mechanisms for consumer
4.2.2. Types and sources of credit to protection.
a business  Identify and explain the policies of consumer
protection in Cameroon.
4.2.3. Importance of credit –  Analyse consumer credit sales in terms of
4.2.4. Credit Control features, necessity etc.
4.2.5. Discounts  Compare and contrast the different types of
Download more GCE resources consumer credit such as (bank credit, loan,
at https://www.meetlearn.com Overdraft, Hire purchase, leasing, Mortgage,
Factoring. , Credit sales, Credit cards etc).
 Analyse the relevance of credit sales to different
stakeholders.
 Appraise the various credit control measures
such as (Check on credit worthiness, credit
limits, monitor the credit system, cash discount
for prompt payment etc).
 Calculate discounts on commercial documents
(Trade, Quantity and Cash).
S/N TOPIC Content Extent of mastery and other relevant
information
5. DOCUMENTS 5.1Information in Business Candidates will be assessed on their abilities to:
USED IN HOME (Sources).  Identify and explain the sources of business
TRADE 5.2Types of documents - information.
 Describe and effect necessary computations
relating to the various trade documents
(Enquiries, quotations, Estimates, tenders,
orders, invoices, debit/credit notes, statements of
accounts, bank cheques, receipts, petty cash
vouchers, delivery notes etc).
6. INTERNATIONAL 6.1 Differences between domestic Candidates will be assessed on their abilities to:
TRADE trade and foreign trade  Define and differentiate between home and
6.2 Reasons for foreign trade. foreign trade.
6.3 Import trade  Rationalize the need for trade between
6.3.1 Import trade of Cameroon countries.
6.4 The export trade  Examine the Import trade procedures,
6.4.1 Price quotations in export specialists in import trade and restrictions on
trade. import trade.
6.4.2 The pattern of export trade in  Identify the imports, procedure, policies and
Cameroon import restriction in Cameroon.
6.5 Documentation of overseas trade:  Examine the features of the re-exports (entrepot
6.6 Membership in the Economic trade), transshipment and process inwards
and custom unions (CEMAC, relief.
ECOWAS, EU etc)  Identify the channels of export trade such as
6.7 The balance of payments selling from within, via agents, over sea sales
Download more GCE resources base, franchising etc.
at https://www.meetlearn.com  Sources of obtaining overseas orders
 Government promotion of export trade.
(advice, promotions, trade fairs, free trade
zone, customs unions etc) Problems faced by
the exporter.
 Identify and discuss the various price quotation
used in export trade (INCOTERMS)
 Identify the exports, procedure, policies and
export restriction in Cameroon.
 Explain the various documents used in foreign
trade(bill of lading, custom declaration forms,
export cargo shipping instruction the national
standard shipping note, the certificate of origin,
the insurance certificate, the airway bill, ships
manifest etc.
 Examine and calculate the various components
of the Balance of Payment.
7. INSURANCE 7.1History of insurance Candidates will be assessed on their abilities to:
7.2The principles and doctrines of Assess the relevant features and brief history of
insurance the insurance business.
7.3Types of risk Make a critical analyses of the insurance
7.4 Insurance contract principles
7.5 Classes of insurance business Good faith
7.6 Categories Insurable interest
7.7 Importance of insurance to the Proximate cause.
economy. Indemnity
S/N TOPIC Content Extent of mastery and other relevant
information
7.8 Social Security Insurance - Subrogation and abandonment.
7.9 The Cameroon insurance market - Contribution
7.10 Re-insurance. Arbitration.
Identify the main categories of risk (Insurable and
Uninsurable)
Describe how an insurance policy is brought into
effect and highlight the determinants of insurance
premiums.
Identify and explain the different types of
insurance covers (Life assurance, Marine, Fire,
Accident, Motor, Engineers/ Aviator etc).
Valued and unvalued policies
 Categorize the insurance business into; Property,
Liability, Person, Interest or rights etc.
 Justify the relevance of the insurance business to
an economy.
 State the insurance companies in Cameroon.
 Examine basic features of the CIMA code and
the problems peculiar with the insurance
industry in Cameroon.
 Discuss the features and importance of the re-
insurance in the insurance business.
 Export credit insurance
 Identify the role of the National Social Insurance
Fund(NSIF)
8. TRANSPORT 8.1 The Elements of transport: Candidates will be assessed on their abilities to:
8.2 The role of transport in  Differentiate between the
commerce: Four main elements of transport (The way, unit of
8.3 Factors influencing choice carriage, motive power unit and the terminal.
8.4 Forms of transport  Analyses the importance of transport to the
8.4.1Road transport: economy.
8.4.2Sea transport:  Recommend the factors to be considered in
Types of sea vessels selecting an appropriate method of transport.
Use of containers in transport  Describe the features of road transport in terms
Facilities of a modern seaport. of; Advantages, Disadvantages, Inter road
The Cameroon National Ports transport, transport of goods by self owned fleet
Authority. or public haulages).
8.4.3 Rail transport  Describe the features of sea transport in terms of;
Rail transport in Cameroon. Advantages, Disadvantages, types of vessels,
8.4.4 Air transport: requirements for an efficient sea transport, and
Facilities of a modern Airport. shipping contracts
The Cameroon airway service.  Identify and explain the different types of vessels
8.4.5 The Pipeline transport: used in sea transport (cargo ships , Roll-on roll-
Download more GCE resources off ferries, General cargo ships, cellular
at https://www.meetlearn.com containers ships, tankers, hovercrafts
 Rationalize the use of containers in sea transport
 Identify the various sea vessels like; hydrofoils,
tramps, Lash ships, Passengers liners, tramps
etc).
 Examine the determine of freight rate e.g.
commodity, distance, period, cargo space, types,
S/N TOPIC Content Extent of mastery and other relevant
information
weights, regulations etc)
 Discuss the advantages, disadvantages,
development, operation, freight rates in road
transport.
 Discuss the advantages, disadvantages, air
freight rates.
 Discuss the advantages, disadvantages,
development, operations and freight rates.

PART TWO: FINANCE

S/N TOPIC Content Extent of mastery and other relevant

information
9. SCOPE OF 9.1Meaning and definition of finance  Define finance,
FINANCE 9.2Objectives of financial  Identify the objectives of finance – profit
management maximization, wealth maximization, growth etc.
9.3 Functions of Financial Manager  Describe the functions of the financial manager
In a business e.g.
9.4 Importance of financial - Forecasting Financial Requirement
management - Acquiring Necessary Capital
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at https://www.meetlearn.com - Cash Management
- Interrelation with Other Departments

Identify and explain the relevance of financial

management in a business including :
- Financial Planning
- Acquisition of Funds
- Proper Use of Funds
- Financial Decision
- Improve Profitability
- Increase the Value of the Firm
- Promoting Savings

10. MONEY 10.1Definition At the end of this chapter candidates should

10.2Characteristics be able to:
10.3 Functions of money - Define money from the functional, legal and
10.4 Forms of money empirical definitions
10.5 The value of money and its - Explain the four basic functions of money.
measurement - Identify the nature the attributes of good
money.
- Describe the evolution of money

11. THE BANKING 11.1 Definition of a bank Candidates should be able to:
SYSTEM 11.2 Kinds of banks - Define and identify the basic functions of
11.3 Commercial banks accepting deposits, bank lending, funds transfer,
S/N TOPIC Content Extent of mastery and other relevant
information
11.3.1 The functions of a safe custody and others.
commercial bank - Describe the canons of lending.
11.3.2 Types of bank accounts - Examine the types and qualities of a good
11.3.3 Bank credit collateral for a bank loan.
11.3.4 Bank lending principles - Identify the assumptions, explain the
11.3.5 Securities for advances quantitative process and describe the limitations
11.3.6 Credit creation of credit creation.
11.3.7 Balance sheet of a - Define the balance sheet of a commercial bank.
commercial bank - Analyse the components of a typical
11.3.8 Payment mechanisms – commercial bank’s balance sheet.
(internal & external) - Analyse the triple objectives of bank -
11.3.9 Electronic banking profitability, liquidity and security.
11.3.10 Commercial banking system - Compare and contrast the different systems of
in Cameroon payments e.g cheques, standing orders, direct
11.4 The Central Bank debits, credit cards, bank draft
11.4.1 Functions -Define E –banking
11.4.2 The bank rates and market - Differentiate the E – Banking services e.g.
rates ATMs, credit cards, debit cards, virtual banking.
11.4.3 Monetary Policy Instruments Etc.
11.4.4 The Bank of Central African - Letter of credit
States (BEAC) - International credit collection services
11.4.5 Monetary Regulatory -
Authorities in Cameroon - Identify the different commercial banks in
11.5 Micro-financial Institutions Cameroon in terms of services, category
(MFIs) in Cameroon ownership, size, capital.
11.6 Other Non-Banking financial - Define MFIs,
institutions (NBFI) - Identify their services and categories.
11.7 Cheques and the Cheques - Justify their existence and identify their
Clearing System. peculiar problems
- Compare and contrast MFIs with Commercial
banks.
Download more GCE resources - Examine the peculiar functions of the central
at https://www.meetlearn.com bank.
- Analyse the monetary policy instruments of the
central bank.
- Identify the principal monetary regulatory
authorities in Cameroon such as MINFI, BEAC,
COBAC, NCC, APECAM, Professional
Association of Bankers (PAB).
- The role of BEAC in the Cameroon banking
System
- BEAC’s control weapons
Describe the functions of:
- Merchant banks
- Mortgage banks
- Investment banks
- Development banks
- Unit/Trust banks
- Pension fund
- Issue houses
- Discount houses
- Acceptance houses
S/N TOPIC Content Extent of mastery and other relevant
information
Identify the parties, endorsements and dishonor
of a cheque clearing system in Cameroon.
12. FINANCIAL 12.1 Definitions of basic concepts At the end of this chapter candidates should
MARKETS 12.2 Types of Financial Markets be able to:
12.3 Capital Market Institutions Categorize differentiate the following types of
(medium & long-term capital) markets.
12.4 Money Market Institutions - Commodity markets,
(short-term capital) - Spot and future markets,
12.5 The Stock Exchange Market - Money market,
12.5.1The Douala Stock Exchange - Capital market,
Market in Cameroon. Summarize the stock exchange market in relation
12.4 The Foreign Exchange Market to the Experts, listing conditions, dealings,
12.4.1 Exchange rates regimes management, share issues, pricing, Speculation,
12.4.2 Foreign exchange risk importance etc.
-Assess the Douala Stock Exchange Market
(DSX) and identify its problems.
Identify and explain:
-Exchange rates Determination,
S -Factors influencing exchange rates
-Exchange rate system ( Fixed, Flexible and
Manage Floating)
Analyse the various types of: -exchange rate
risks (transaction, translation and economic)
13. BUSINESS 13.1 The need for capital – At the end of this chapter candidates should
FINANCE 13.2 Factors to be considered in be able to:
selecting a suitable financial  Rationalize the Long and short term capital
method requirements.
13.3 Finance for small and medium  Justify suitable source in terms of: Cost,
size enterprises Cash flows, duration, gearing, accessibility,
13.4 Corporate finance Security and covenants, control, dividend
- Debt/Equity capital policy etc.
- Internal/External capital  Identify the sources of finance suitable for the
13.5 Term-Structure of various Sole proprietorship and partnership firms.
sources of finance  Categorize the various sources of corporate
13.6 Capital Gearing (Leverage) finance in terms of:
-Short term source: (Bank overdraft, short term
bank loans, operating lease, delayed settlements
of credit, Factoring, invoice discounting etc)
Download more GCE -Medium term capital: (bank loan, hire purchase,
resources at sales and lease back, Equipment leasing etc).
https://www.meetlearn.com -Long term or Permanent capital: i) Equity
Shares and share premium
- Features of equity shares,
- Methods of raising equity capital-
(retained profit, rights issues, new
external share issue - private
placement, offer for sale, tender,
prospectors, introduction etc)
- venture capitalists and business angels
ii) Preference Shares
- Types, Features of preference shares,
iii)Debentures: Types, features iv) Internal
S/N TOPIC Content Extent of mastery and other relevant
information
sources: ploughing back profits, depreciation,
disposal of assets etc.
14. FINANCIAL 14.1Meaning and definition of At the end of this chapter candidates should be
STATEMENTS financial statements. able to:
ANALYSIS 14.2Users of financial statements/  Define the statement of financial position
analysis (balance sheet), the statement of comprehensive
14.3Types of Financial statements income and the cash flow statements etc.
analysis  Justify the use of financial analysis to
14.4 Categories of Financial Ratios trade creditors, suppliers, the investors,
14.4.1Profitability ratios management, competitors etc
14.4.2Liquidity ratios Calculate and interpret the following ratios:
14.4.3Solvency ratios :  Profitability ratios (Return on capital
14.4.4Efficiency ratios. employed (ROCE), profit margin, net profit
14.4.5 Shareholders' investment margin, mark-up, ROA and EPS).
ratios  Liquidity ratios (Current ratio, Quick ratio
14.5 Over trading, Over and working capital )
capitalization and Under  Solvency ratios (Debt ratio,
capitalization Gearing/leverage ratio, Interest cover)
14.6 Insolvency and bankruptcy  Efficiency ratios ( Stock turnover,
Receivable period, Inventory days and
Payable days)
 Shareholders investment ratios (Earnings
per share, Dividend per share, Dividend
cover, P/E ratio, Dividend yield)
-Define and identify the causes of over
capitalization and under capitalization.
-Analyse the effects and remedies of over
capitalization and Under capitalization
- Compare and contrast under and over
capitalization.
- use financial ratios to Judge insolvency.
-Analyse the causes of insolvency
-Recommend solutions to prevent insolvency
-Define bankruptcy and examine its causes.
-Compare and Contrast insolvency against
bankruptcy.
15. FINANCE OF 15.1 Payment mechanisms in At the end of this chapter, candidates should
FOREIGN TRADE overseas trade: be able to:
15.2 Price quotations and terms of  Explain the following methods of
payments in overseas trade international settlement.
(INCOTERMS) a) cash with orders,
15.3 The finance of foreign trade: b) documentary letters of credit,
15.4 Government promotion of c) documentary collection – (bill of
overseas trade: exchange), documents against payment,
Download more GCE resources documents against acceptance,
at https://www.meetlearn.com d) Open account terms etc.
 Examine the methods of financing external
trade Such as:
Self financing,
Overdraft
acceptance credit
S/N TOPIC Content Extent of mastery and other relevant
information
export finance house
factoring,
invoice discounting,
credit lines,
ECGD
IFC
-Examine government assistance to foster foreign
trade like; advice, promotion international trade
fairs, creating trade zones and joining custom
unions etc.
16. BUDGETING 16.1 Definitions of Concepts of After studying this chapter, you should be
Budget able to:
and Budgetary control  Explain the general principles involved in the
16.2 Budgetary Objectives budgeting process, budgetary period and
16.3 Setting up a Budgetary Control budget centers.
16.4 Types of Budgets  Classify budgets (subsidiary and masters)
16.5 Forms of budgets  Identify and explain in brief the
16.6 Behavioural Aspects of subsidiary budgets such as Sales,
Budgeting Production, Material budgets, Direct Labor
16.7 Budget Performance Reports. Budget, Production overhead budgets, R &
D, Selling, Distribution, Administrative,
Capital expenditure, and Cash budgets.
 Prepare the cash budget
 Interpret information in functional budgets.
 Distinguish between the subsidiary and
master budgets.
 Identify the forms of budgets
- fixed budgets
- Flexible budget
- Continuous or rolling etc.
17. TIME VALUE OF 17.1 The notion of the time value of At the end of this chapter, candidates should be
MONEY AND money. able to:
ELEMENTARY 17.2 Compounding and discounting. - Define the time value of money and explain
CAPITAL 17.3 The concept of capital why money has a time value.
BUDGETING budgeting - Calculate the future and present values of either
17.4 The Need and Importance of a lump sum or a series of cash flows, rate of
Capital Budgeting discount as well as the duration.
17.5 The Capital Budgeting Process - Explain the meaning of capital expenditure
Download more distinguishing it from a revenue expenditure.
GCE resources at - Assess the needs and importance of capital
https://www.meetlearn.com budgeting such as the fact that it commits a
reasonable amount of resources, irreversibility
of the project etc
- Apply the Pay-back Period (decision role,
Illustration advantages, disadvantages)
- Net present value (decision role, illustration,
advantages and disadvantages).
9 Differences between the Revised Syllabus and the Previous One.
The entire structure of the previous syllabus was reorganized in terms of repositioning of the topics and sub-topics
as well as providing the necessary step-by-step linkages to enable candidates and their teachers have a clearer
picture and a continuous flow of knowledge within the subject matter.

Furthermore, appropriate and suitable titles were inserted on all topics in areas that were either ignored or omitted
in the previous syllabus while topics that were wrongly titled were re-titled.

The previous syllabus also contained a lot of ambiguity in terms of synonyms. This exercise has been able to
rectify the situation by expunging out of the syllabus all the irrelevant materials to give candidates a clear cut and
concise view of the subject matter.

The review exercise has also merged together some topics where there is no justification for their separation.
The reviewed syllabus has also eliminated topics that rightly belong and are better treated in related fields. . In
their place fresh and suitable topics and sub-topics have been introduced. Also, brand new and relevant topics
have also been introduced in the revised syllabus like; consumer legislation, documents used in foreign trade,
financial statement analyses, financing of foreign trade, price quotations, time value of money, capital budgeting,
e-banking, micro financial institutions etc. The syllabus has also redirected the subject matter towards local
markets and environment.

10 Recommended text books and Other Resources

 S. Evelyn Thomas, “COMMERCE: its Theory and Practice, Cassell, London.
 Fomba B.T.B., “Commerce & Finance”
 Frederic S. Mishkin, “Economics of Money, banking and Financial Markets, Pearson, New York
 “Business Economics and Commerce”: The Official Training Manual of the College of Professional
Management.
 National Council of Credit of Cameroon: Progress Reports.
 Financial Journals, Financial Newspapers and Financial News for current issues.

11 Language of Assessment
Assessment of this course will be available in English only. Consequently, assessment materials would be
published in English only and all work submitted for examination and moderation must be produced in English.

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