How to Use This Book

A Note to the Reader

In-text citations use the author-date style (Author, Year). Full details are in the End References at the back of the book. Web sources were consulted in October 2026.

This book follows the structure of the Sri Lankan GCE Advanced Level Commerce stream, which leads to management, accounting, finance, banking, economics, business analytics, and entrepreneurship. Syllabi, accounting standards, tax rates, and admission rules change from time to time. Always confirm details with your teacher, the National Institute of Education (NIE), the Department of Examinations, and the University Grants Commission (UGC). Nothing in this book is professional financial, tax, or legal advice.

Contents

1. Introduction: The Commerce Pathway 1

2. Study Skills, Exam Strategy, and Wellbeing 4

3. Accounting I: Foundations and the Accounting Cycle 7

4. Accounting II: Financial Statements of Sole Traders, Manufacturers, Not-for-Profit Bodies, and Incomplete Records 11

5. Accounting III: Partnership Accounts 15

6. Accounting IV: Company Accounts and Sri Lanka Accounting Standards 17

7. Accounting V: Analysis and Interpretation of Financial Statements 21

8. Accounting VI: Cost and Management Accounting 24

9. Business Studies I: The Business Basis, Environment, and Entrepreneurship 28

10. Business Studies II: Management 32

11. Business Studies III: Operations Management and Marketing 35

12. Business Studies IV: Financial Management, Human Resources, and Information Systems 38

13. Economics I: Foundations and Microeconomics 41

14. Economics II: Macroeconomics 46

15. Economics III: International Economics, Development, and the Sri Lankan Economy 50

16. Business Statistics I: Descriptive Statistics, Probability, and Distributions 54

17. Business Statistics II: Inference, Regression, and Decision Making 58

18. ICT for Commerce Students 61

19. Putting It Together: Business Skills Across the Subjects 64

20. Higher Education, Professional Qualifications, and Careers 66

21. A Two-Year Plan and Checklist 69

22. Conclusion 71

23. Glossary 72

End References 74

CHAPTER 1