KASNEB DCM study guide
KASNEB DCM · Work through your exam, one topic at a time.
The Diploma in Credit Management (DCM) is one of the diploma-level qualifications examined and certified by the Kenya Accountants and Secretaries National Examinations Board (Kasneb), a State Corporation under The National Treasury and Economic Planning, established by the Government of Kenya in 1969. Kasneb's mandate covers the development of syllabuses, the conduct of professional, diploma and technician examinations, and the certification of candidates in accountancy, finance, credit, governance and management, information technology and related disciplines - so the DCM sits squarely within the credit strand of that mandate. The KASNEB DCM study guide has 5 sections and about 1,589 words.
01Credit Management: Policy, Appraisal and Collection
Credit management spans credit policy design, customer appraisal, limit setting, invoicing, monitoring and collection. The appraisal toolkit includes the 5 Cs - character, capacity, capital, collateral and conditions - plus credit scoring, credit reference bureau reports, trade and bank references, and ratio analysis (current ratio, gearing, interest cover, cash flow cover).
354 words, about 2 min02Financial Accounting: From Double Entry to Expected Credit Loss
Every transaction hits two accounts (debit and credit), flows through books of prime entry into the ledger, is tested by a trial balance , adjusted for accruals, prepayments, depreciation, inventory and provisions , and finally presented as a statement of profit or loss and statement of financial position. Know the qualitative characteristics (relevance, faithful representation) and the conventions: going concern, accruals (matching), prudence, consistency, business entity .
313 words, about 2 min03Business Law: Contracts, Security and Instruments
A valid contract needs offer, acceptance, consideration, intention to create legal relations and capacity , with no vitiating factor (misrepresentation, mistake, duress, illegality). Distinguish an offer from an invitation to treat (price lists, auctions, advertisements, tenders).
299 words, about 1 min04Economics and Entrepreneurship: Markets, Policy and Viability
The demand curve slopes downward; supply slopes upward; equilibrium clears the market. A movement along a curve follows a price change, while a shift follows a non-price factor (income, tastes, related-good prices, expectations).
309 words, about 2 min05ICT and Professional Ethics: Controls, Data and Conduct
Credit and finance functions run on spreadsheets, accounting packages, ERP modules, databases and cloud platforms. Know the control vocabulary: input validation, access rights, segregation of duties, audit trails, reconciliation, backup and disaster recovery, encryption, hashing and digital signatures .
314 words, about 2 min