ATTENTION:
BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW,
PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL
PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE
COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953,
08168759420
THE
RELEVANCE OF ACCOUNTING INFORMATION IN DECISION MAKING PROCESS
ABSTRACT
This
research work was carried out to know the Relevance of accounting information
in decision making process using United Africa Company (UAC) of Nigeria PLC as
a case study. The objective of this study is to examine the usage level of
accounting information and to show how accounting information assist in
decision making, the purpose and significance of the study were highlighted, in
addition the limitations and scope of the study was also discussed, research
questions raised and hypothesis stated.
Relevant
literatures were reviewed; the perspective of society in general and in
decision making in particular towards accounting, accounting information
system, decision making process, users of accounting information, characteristics
of accounting information, usefulness of accounting information and problems of
accounting information.
The methods
adopted in data collection, population selection, sampling technique adopted
and methods of data analysis where critically discussed.
Data was
presented and analyzed using the administered questionnaire. This was carried
out to obtain adequate answers to the research questions and also to test the
hypothesis.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE·STUDY
Decision
making is a comprehensive process that comprises with identifying the problems
and decision criteria, allocating weight to those criteria, moves to
developing, analyzing and selecting an alternative' that can resolve the
problem, implementing the alternative and ending with the evaluating the
decision's effectiveness. Accounting information relates to the output of
accounting department of an organization it is provided through collection,
analysis, presentation and interpretation of data and information from other
department in term of monetary values.
Accounting
information is a major means of helping managers of organization equity
investors of an organization, potential equity investors, creditors and bond
holders of an organization, supplier’s and customers of an organization and
other stake holder to take decisions.
Accounting
provides information for three major purposes:
1. External Reporting: these reports are used
by investors, creditors, government authorities and other outside parties
Routine
Internal Reporting: these reports which are periodically generated are used by
managers of· the company for their internal decision.
3. Non-Routine Internal Reporting: this
information or reports are generated to support projects and other decision
that comes up as the need arises from them.
The role of
accounting information in business decision making process can be likened to
the role of a captain of a sailing ship. The prudent t captain studies his
charts before setting sail, then sets a course for his destination, knowing
where he wants to be at a particular point in time, he checks his position
continuously, taking correction action if he is off course. The weather may be
uncertain and unpredictable and the seas uncharted, but with necessary
instruments even the smallest boats can come through the most severe
conditions.
By simple
analogy a good accounting information system enable management direction and
other users of information know where they are, where they are going and how to
get there using appropriate management tools.
Thus the
main focus of this project is to establish the impact of accounting information
vis-a-vis decision making from the point of view of a major user of accounting
information United Africa Company of Nigeria (UAC) Nig. PLC .
1.2 STATEMENT OF PROBLEMS
In a
corporate setting, the decision makers (managers) are generally distinct from
the owner of the business enterprise. In like manner, financial managers'
function involves three main types of managerial decisions.
One of the
financial manager decisions is about investment.
The
financial manager has not been able to evaluate efficiently and effectiveness
on the timing and the risk of future cash flows of investment due to inaccurate
account ting information on the state of liquidity of the organization.
Secondly,
financial decision is also a financial manager responsibility and the best
financing mix or capital structure to finance the investment decisions has not
been utilized due to poor accounting information system.
Thirdly,
dividend decision which involves determining how much should be paid out of the
firm's earnings to the shareholders as dividend and how much is to be retained
cannot be ascertained due to lack of the knowledge of accounting tools for
analyzing is accounting information.
1.3 PURPOSE OF THE STUDY
The
relevance of accounting information as a tool for business decision cannot be
over emphasized. The objectives of this study are stated below:
To ex-ray
and establish that accounting information assist decision making
To examine the usage level of accounting
information
To assess
the significance of quantitative and qualitative accounting information
To show the
necessity of accounting information and to notify its sources.
5. To check the performance evaluation
To show the
influence of accounting information in decision making.
1.4 SIGNIFICANCE OF THE STUDY
This study
is significant in many ways. Firstly, it is an in-depth study on the importance
of accounting information as a decision making tools.
Secondly, it
provides an overview of the constituents of accounting information in use by a
major use of accounting information (UAC NIG PLC). Put simply, at the end if
this study, problems associated with the generation of accounting information
would have been identified and solution proffered. 'the assumption is that
given the central rule of accounting in decision making and organizational
performance, problem identified and solution proffered would be applicable to
the various users.
Lastly, the
impact of computer technology in generating and processing of accounting
information is recognized and appreciated.
However,
this study would not involve this area. It is hoped that this would constitute
an investigative focus for future researchers.
1.5 SCOPE AND LIMITATION OF THE STUDY
This study
shall be focus on the Nigeria companies using UAC NIG PLC as a case study.
Sample of population of study" shall be financial Manager, chartered
accountants, educationist in the field of the business administration, students
studying accounting and other related courses etc.
The major
limitations of this study are as follows:
1. Statistics: The absences of vital statistics
that would have lent more weight to the conclusion. This is not saying that
conclusion reached in this study is baseless.
2. Confidentiality: Some information that one
would have like to feature in the study were considered to confidential for
purpose of this study.
3. Time: There is a limited time going by the
volume of work involved in a study of this nature.
1.6 RESEARCH QUESTION ON STATEMENT OF
HYPOTHESIS The purpose of this study has earlier been identified as that of
establishing how accounting information provides basis for business decisions.
The following are the research questions:
Do companies
rely on accounting information in decision making?
What are the
problems inherent in the use of accounting information as a tool for decision
making?
How can
problems of accounting information be solved or minimized?
What is the
assessment of accounting information as a basic tool for decision making?
The
statement of hypothesis will therefore be a null and alternate. They are:
Ho:
Management performance is not positively related to a good accounting
information system
Hi:
Management performance is positively related to a good accounting information
system.
Ho:
Accounting information has no bearing on the quality of business decision.
Hi:
Accounting information has bearing on the quality of business decision.
Ho:
Accounting information has no positive effect on shareholders' investment
decision
Hi:
Accounting information has positive effect on shareholders' investment
decision.
1.7 HISTORICAL BACKGROUND
United
Africa Company of Nigeria PLC (UAC) has a rich and varied history of successful
enterprise that pre-dates the geographical entity called Nigeria. The rumps of
the Company's early days can be traced to the activities of European traders
and commercial activities.
The Company
has evolved through a series of mergers and acquisitions and restructurings as
the various entrepreneurs sought to enthrone profitable and enduring
enterprises.
One of the
most significant developments in the company's history was the setting up of
the Royal Niger Company, which was chartered between 1672 and 1750 to
administer the territory that would later become Nigeria.
United
Africa Company of Nigeria (UAC) NIG. PLC was originally establish in 1879 as at
trading company and was found following the merger of four companies trading up
the River Niger: Alexander Miller Brother and Company, Central African Trading
Company Limited, West African Company Limited and James Pinnock but became a
public company in 1974 to commence manufacturing In Nigeria.
United
Africa Company of Nigeria is a fully owned Nigeria public company and one of
the largest diversified businesses in the private sector company with over
190,000 shareholders. The company's business portfolio includes the following
companies: UACN Property Development Company PLC
(UPDC), the
first company in the real estate sector to be quoted on the stock exchange,
warm spring waters Nigerian Limited, manufacturer of "GOSSY" spring
Water, the bottling plant is located in Ikogosi-Ekiti, Ekiti State. The Company
has majority stakes in Grand Cereals and Oil Mills Limited (GCOML); Spring
Waters Nigeria Limited (SWAN) and Option Leasing Company Limited. UAC interests
also include shareholdings in CAP PLC, UAC Registrars Limited and GM Nigeria
Limited as a joint venture with General Motors Corporation of Detroit USA
(300/0 equity), the world's largest automobile manufacturer, Following the new
pensions reforms in the country, UAC has registered UNICO CPFA Limited, as a
subsidiary of the Company.
UAC's
Corporate Social Responsibility initiatives target the' educational sector
through interventionist programmes that seek to uplift the standards in the
sector and provide a more conducive atmosphere for sound academic attainment.
The Company's pilot Schools Support Projects have led to the provision of
various. Infrastructural assistance and facilities to schools in some of the
geo-political zones of the country.
The Company
has, over the years, directed its. Corporate Social Responsibility initiatives
towards assisting communities, institutions and charitable organizations and
the award of scholarships.
Today, UAC
has become a food focused conglomerate with leading brands such as Mr. Biggs,
Gala, Grand oils, Supreme, SWAN Natural Spring Water and Gossy Spring Water.
The company's brand portfolio also includes franchised international food brand
such as Nando's, Creamy Inn, Chicken Inn, Pizza Inn and Dial-A-Delivery.
The
headquarter of UAC PLC is located at Niger House Lagos. Some factors that aids
the company's growth includes:
Diversification
Population
Advertisement
Good
marketing skill
Standard
quality of product
Winning with
people initiative (WWP)
1.8 DEFINITION OF TERMS
Accounting
Information System: This can be defined as the means for collecting, collation,
accumulation, analysis, processing, reporting and interpretation in standard
term, information about the business to assist management it; planning, control
and decision making.
Financial
Analysis: It can be defined as the relationship between financial data in the
financial statement to assist or aid In evaluating the financial condition and
performances ofa firm or company in a particular financial year and in
accordance with the interest of various users of the report
Liquidity:
It is the ability of a company to meet its financial obligations as they become
due. It can also be referred to as a state of solvency.
4. Insolvent: It is a state or situation
where as a company finds itself unable to meet its obligation as they fall due.
.
Generally
Accepted Accounting Principles (GAAP): These are set of accounting concept used
in the preparation and presentation of financial statement. The fundamental
accounting concepts include: entity, going concern, periodicity, realization,
matching, consistency, historical cost and double entry.
Inflationary
Economy: This is an economy where its monetary value varies with time movement.
It IS synonymous with third world countries. e.g. Nigeria, Ghana, India, Malaysia, etc.
Exchange
Rate Flotation: This is the rising and failing of the, value of local currency
to that of its foreign counterpart. This fluctuation has great impact on
investment and decision making.
Budgets: These are plan of what a business
expects to accomplish and its incorporated target for achievement, a budget is
generally a financial and/ or quantitative plan of operations for a forthcoming
accounting period.
Financial
Statement: This is a sub-division of the content of an annual report and it
provides summary information to various users which enable them to know the profitability,
liquidity or general well-being of a company.
Capital
Structure: The capital structure of company could be described as the way in
which a company is financed or being owned. The capital structure of a company
can be financed by equity finance and debt finance.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you
will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank Account
below, send the following information to
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
AFFILIATE LINKS:
myeasyproject.com.ng
easyprojectmaterials.com
easyprojectmaterials.net.ng
easyprojectsmaterials.net.ng
easyprojectsmaterial.net.ng
easyprojectmaterial.net.ng
projectmaterials.com.ng
googleprojectsng.blogspot.com
myprojectsng.blogspot.com.ng
https://projectmaterialsng.blogspot.com.ng/
Comments
Post a Comment