THE ROLE OF ACCOUNTING INFORMATION IN THE NIGERIA
CONTEXT
(A CASE STUDY OF ALO ALUMINUM)
CHAPTER ONE
References 15
CHAPTER TWO
and accounting 44
References 48
CHAPTER THREE
References 54
CHAPTER FOUR
Graphs and tables 56
CHAPTER FIVE
References 91
Appendices 93
LIST OF TABLES
Table Page
on what extent the proper accounting records and
reports helps in the establishment
does proper accounting information helps in an organisation
on what extent does modern system of accounting
information helps in an organisation.
on what extent does accounting helps in planning in an organisation
on what extent does performance of an organisation help
in term of profitability or solvency
ABSTRACT
The main objective of this research work is to find out by investigation and analysis how the services of accountants assist in the effective financial management in private and public organization in Nigerian context.
For some time now, cases of frauds, embezzlement and inadequacy of accounting system which have led many establishments to liquidation and as such became necessary that a research be undertaken to find out a permanent solutions to the problem.
In chapter one, efforts were made to define and evaluate the system of accounting and the need why knowledge of accounting is necessary to everybody be it a businessman, a civil servant, even a housewife.
Chapter two reviewed some related literatures in the field of the research work.
Chapter three treated the research methodology, design area of study population of the study, sample and sampling procedure, instrument for data collection and courses method of data analysis. In chapter four, the data collection were presented and the analysis of results given in such a way for better understanding.
Finally, in chapter five a discussion of the findings and the implications were made. By and large, it was established that proper accounting information plays a vital role towards the effective finance management in Alo-Aluminum.
CHAPTER ONE
INTRODUCTION
The owner of a business naturally wishes to run his business efficiently as possible. One of the cardinal purposes of keeping accounts is to enable him to do this. His accounts should tell him the exact cost of what he is selling, the exact amount of each expense, which is involved, and the exact revenue of the business.
With such information, the owner of the business can make comparison from year to year. Comparing the profit this year with the preceding years and investigate the causes of any difference. That is, by making comparison of the amount of each cost and each expense incurred.
By studying his accounting in this manner, the business manager can now formulae a business policy. He may, for instance take a decision whether to increase or lower prices of his products. To embark on advertisement or not. To change the method of production or to change the orgnisational structure.
To ordinary man in the street, account means story, explanation or report of money received and spent in the remote past, the actual record-making is called “Book-keeping”. However, accounting today extends beyond bookkeeping.
Accounting is a discipline concerned with the recording, analysis, and forecasting of income and wealth of business and other entities. Generally it records in money terms, the flow of economic values between or within economic entities.
According to (Wood’s 1992), “Accounting is said to be the language of business. At a given time, accounting made it possible for a businessman to discover
According to (White Head 1977), “Accounting is the art of controlling a business by keeping accurate book-keeping records, preparing from those records certain statistics called accounting ratios, using those ratios to dictate financial difficulties before they become serious, so that counter measure may be taken”
However, it is necessary to review the definition of the objective of accounting in line with the present role expected of accounting discipline. The main purpose of accounting centred on the provision of potentially useful information for making economic decision that capable of enhancing social welfare.
STEWARDSHIP ACCOUNTING
It is the duty of management to ensure that owner’s wealth are safeguard from theft, embezzlement and also report on the periodic result of owner’s business.
FINANCIAL ACCOUNTING
Financial Accounting is confined to preparation of financial statement for the use of outsiders like debenture holders, creditors, banks, and also for the information of shareholders to show the manner in which the business operation are conducted during the specific period.
According to Osisioma (1975), “accounting is a way to give management the financial information and control it needs to run a profitable business or an efficient organisation”. It is a system of principles and techniques the permits the recording, classification accumulation, presentation, and interpretation of financial information so that past performance, present condition and future planning can be evaluated. The best for of comparison involves the use of carefully assessed standard of the results, which ought to be achieved in the circumstances of the business concerned.
Financial of information to outsiders who have the right to get the same under certain well defined and accepted principles and rules.
MANAGEMENT ACCOUNTING
Management is the process of procuring, combining, utilizing or allocating an organizational in-puts, planning, organizing, directing and controlling for the purpose of achieving the objective of a business.
Management accounting therefore is an integral part of management that concerned with identifying, presenting, and interpreting, information required by management of all levels for decision-making.
This concerns with data gathering analyzing, processing, interpreting and communicating the resulting information for use within the operation so that management can more effectively plan, making decisions and control operations.
Managing a business is a matter of deciding what should be done, seeing to it that the means available and getting people employed in the business to do it.
Decision-making is one of the main functions of management, therefore, provision of vital information needed to assist all levels of management in planning and controlling the activities of commercial enterprise.
Cost Accounting provides information for both management accounting and financial accounting. It measures and reports information that relates to the cost of acquiring or consuming resources by an organisation.
According to Institute of Cost and Management (IMA) defined cost accounting as the “application of accounting and principles, methods and techniques in the ascertainment of costs and the analysis of savings and/or excess as compared with previous experience or with standard”.
Cost accounting provides management with information about cost of materials, unit cost, production cost. Whether to produce or sell product ‘A’, should a particular product be made or bought. The effect (financially) increment or reduction in input (variable costs). All these call for decision-making, which lies on accounting information.
This involved with the consideration of the social effects of business decision as well as their economic effects on the society as a whole.
Accounting data is vital tool for all these responsible for taking decision in any business organisation. It is immaterial whether the business in question is a private or public venture. The scale of operation does not matter also. However, the tool becomes increasingly
Relevant as the manager’s responsibilities broaden with business expansion and complexity.
Proper accounting is in no doubt enhances effective management decision-making. Many Accounting ideas and data help the management in performing its functions.
This study concentrates on the proper accounting information in management decision-making in public liability companies especially ALO-ALUMINUM COMPANY ENUGU.
Every establishment has its peculiar structure and its designed duties for the customers. In view of this therefore, proper accountability is required for the overall growth of the business.
The major role of accounting be it government or private is to provide useful information for assessing management’s performance and stewardship.
However, there are some questions, which the managers or owners of the business would like to know –
The above questions required positive answers. Some companies in spite of availability 3m (labour, materials and money) still performed below the expectation. The reasons for their failure include lack of effective management information improper accounting records in the business operation.
In summary, the kind of information which account provide is useful to managers, owners, investors, bankers, lawyers, even to the house wives who practice door to door petty businesses.
These include:
Based on the above problem defined, the following are the objectives.
In this study, the scope on the proper accounting information as a tool for management decision-making is centred on ALO-ALUMINUM LTD. ENUGU base.
1.5 RESEARCH QUESTIONS
1.6 HYPOTHESES
Hypothesis is defined as a guess that is possible solutions to a problem. Hypothesis test events to determine the type of material. May be viewed, on the other hand, is a tentative solution of the research problem.
Therefore, one hypothesis will be tested both in null and alternative forms. The alternative hypothesis is state below:
H0: For null and Hi for alternative
H1: There is significance relationship between senior and junior staff of ALO-ALUMINUM ENUGU, on the need for proper accounting information in their establishment.
H0: The null hypothesis is that there is no relationship between senior and junior on talking the problem of proper accounting information in their establishment.
1.7 SIGNIFICANCE OF THE STUDY
The study will highlight on the need for controlling a business by way of keeping accurate records of a business transaction, preparing form those records useful information for management use.
According to White Head (1977) “Accounting is the art of controlling a business by keeping accurate-keep-keeping records, preparing from those records certain statistics called accounting ratios, using those ratios to detect financial difficulties before they become serious, so that center measure may be taken.
The roles of manager (financial) are considerably different from what it was in the past and will no doubt continue to change. Managers of various business enterprises must grow to accept the changing environment and master its challenges.
Financial function of raining and use of money has a very significant effect on the other functions. One of the primary functions of managers is to procure funds, allocation of capital, management of assets and valuation of the form in the overall market.
Probably, there are two main questions that the managers or owners of the business want to know-first whether or not the firm as operating at a profit. Secondly, whether or not the business will be able to meet its commitments as they fall due. Accounting idea and data provides answers to the above questions.
Financial manager (Accountant) is duty bound to prepare his accounting information in compliance with the status and standard set by the accounting professional bodies. The main information supplied by the accounting is known as corporate report, financial statement, or final account. He supplies potentially useful information to the investors, creditors, employees, track unions, and related groups, consumer, government and its agencies, business and financial analysis as well as management.
The whole of financial accounting is based on the accounting equation. The accounting equation is expressed in financial statement called the “Balance Sheet”. Accountant is responsible for directing, controlling, coordinating the work of the bookkeeping stall.
REFERENCES
Favel, A. J. (1980); Practical Book-keeping and Accounts University Tutorial Press Ltd. London.
Wood, F. (1982); Business Accounting 1 Uk. London Group
White-Head (1977); Principles of Accounting London, Core and Wyman
Etuk-Udo, J. S. (1976); Principles of Accounts for West Africa. London Oxford University Press.
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COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
CONTEXT
(A CASE STUDY OF ALO ALUMINUM)
CHAPTER ONE
- Introduction 1
- Background of the study 1
- Statement of problem 9
- Purpose of the study 9
- Scope of the study 10
- Research questions 10
- Hypotheses 11
- Significance of the study 12
References 15
CHAPTER TWO
- Review of literature 16
- Accounting Principles, concepts and convention 16
- Accounting information system 20
- Accounting of Trading and Non Trading Organisation 34
- Public sector accounting 38
- Concept of management, management decision-making
and accounting 44
- Summary of related reviewed literature 45
References 48
CHAPTER THREE
- Methodology 49
- Research design 49
- Area of study 49
- Population of the study 50
- Sample and sampling procedure 50
- Instrument of data collection 50
- Validation of the instrument 51
- Reliability of Data collection 52
- Method of data collection 52
- Method of data analysis 53
References 54
CHAPTER FOUR
- Data presentation and analysis of result 55
- Summary of results/findings 56
Graphs and tables 56
CHAPTER FIVE
- Discussion, implication, recommendations and conclusion 83
- Discussion of results 83
- Conclusion 85
- Implications of the results 86
- Recommendations 87
- Suggestions for further research 89
- Limitation of the study 89
References 91
Appendices 93
LIST OF TABLES
Table Page
- Senior and Junior staff of the Alo-Aluminum Enugu
on what extent the proper accounting records and
reports helps in the establishment
- Hypothesis one
Senior and Junior staff presented on what extent
does proper accounting information helps in an organisation
- Hypothesis two
- The presentation of senior and junior staff responses
on what extent does modern system of accounting
information helps in an organisation.
- Hypothesis three
Data presentation of senior and junior staff responses
on what extent does accounting helps in planning in an organisation
- Hypothesis four
Data presentation of senior and junior staff responses
on what extent does performance of an organisation help
in term of profitability or solvency
- Hypothesis five.
ABSTRACT
The main objective of this research work is to find out by investigation and analysis how the services of accountants assist in the effective financial management in private and public organization in Nigerian context.
For some time now, cases of frauds, embezzlement and inadequacy of accounting system which have led many establishments to liquidation and as such became necessary that a research be undertaken to find out a permanent solutions to the problem.
In chapter one, efforts were made to define and evaluate the system of accounting and the need why knowledge of accounting is necessary to everybody be it a businessman, a civil servant, even a housewife.
Chapter two reviewed some related literatures in the field of the research work.
Chapter three treated the research methodology, design area of study population of the study, sample and sampling procedure, instrument for data collection and courses method of data analysis. In chapter four, the data collection were presented and the analysis of results given in such a way for better understanding.
Finally, in chapter five a discussion of the findings and the implications were made. By and large, it was established that proper accounting information plays a vital role towards the effective finance management in Alo-Aluminum.
CHAPTER ONE
INTRODUCTION
- BACKGROUND OF THE STUDY
The owner of a business naturally wishes to run his business efficiently as possible. One of the cardinal purposes of keeping accounts is to enable him to do this. His accounts should tell him the exact cost of what he is selling, the exact amount of each expense, which is involved, and the exact revenue of the business.
With such information, the owner of the business can make comparison from year to year. Comparing the profit this year with the preceding years and investigate the causes of any difference. That is, by making comparison of the amount of each cost and each expense incurred.
By studying his accounting in this manner, the business manager can now formulae a business policy. He may, for instance take a decision whether to increase or lower prices of his products. To embark on advertisement or not. To change the method of production or to change the orgnisational structure.
To ordinary man in the street, account means story, explanation or report of money received and spent in the remote past, the actual record-making is called “Book-keeping”. However, accounting today extends beyond bookkeeping.
Accounting is a discipline concerned with the recording, analysis, and forecasting of income and wealth of business and other entities. Generally it records in money terms, the flow of economic values between or within economic entities.
According to (Wood’s 1992), “Accounting is said to be the language of business. At a given time, accounting made it possible for a businessman to discover
- The value of his in-put and out-put.
- The available cash/bank balance
- His debtors and creditors
- Value of assets
- Whether profit or loss
- The financial position of the business.
According to (White Head 1977), “Accounting is the art of controlling a business by keeping accurate book-keeping records, preparing from those records certain statistics called accounting ratios, using those ratios to dictate financial difficulties before they become serious, so that counter measure may be taken”
However, it is necessary to review the definition of the objective of accounting in line with the present role expected of accounting discipline. The main purpose of accounting centred on the provision of potentially useful information for making economic decision that capable of enhancing social welfare.
STEWARDSHIP ACCOUNTING
It is the duty of management to ensure that owner’s wealth are safeguard from theft, embezzlement and also report on the periodic result of owner’s business.
FINANCIAL ACCOUNTING
Financial Accounting is confined to preparation of financial statement for the use of outsiders like debenture holders, creditors, banks, and also for the information of shareholders to show the manner in which the business operation are conducted during the specific period.
According to Osisioma (1975), “accounting is a way to give management the financial information and control it needs to run a profitable business or an efficient organisation”. It is a system of principles and techniques the permits the recording, classification accumulation, presentation, and interpretation of financial information so that past performance, present condition and future planning can be evaluated. The best for of comparison involves the use of carefully assessed standard of the results, which ought to be achieved in the circumstances of the business concerned.
Financial of information to outsiders who have the right to get the same under certain well defined and accepted principles and rules.
MANAGEMENT ACCOUNTING
Management is the process of procuring, combining, utilizing or allocating an organizational in-puts, planning, organizing, directing and controlling for the purpose of achieving the objective of a business.
Management accounting therefore is an integral part of management that concerned with identifying, presenting, and interpreting, information required by management of all levels for decision-making.
This concerns with data gathering analyzing, processing, interpreting and communicating the resulting information for use within the operation so that management can more effectively plan, making decisions and control operations.
Managing a business is a matter of deciding what should be done, seeing to it that the means available and getting people employed in the business to do it.
Decision-making is one of the main functions of management, therefore, provision of vital information needed to assist all levels of management in planning and controlling the activities of commercial enterprise.
COST ACCOUNTING
Cost Accounting provides information for both management accounting and financial accounting. It measures and reports information that relates to the cost of acquiring or consuming resources by an organisation.
According to Institute of Cost and Management (IMA) defined cost accounting as the “application of accounting and principles, methods and techniques in the ascertainment of costs and the analysis of savings and/or excess as compared with previous experience or with standard”.
Cost accounting provides management with information about cost of materials, unit cost, production cost. Whether to produce or sell product ‘A’, should a particular product be made or bought. The effect (financially) increment or reduction in input (variable costs). All these call for decision-making, which lies on accounting information.
SOCIAL RESPONSIBILITY ACCOUNTING
This involved with the consideration of the social effects of business decision as well as their economic effects on the society as a whole.
Accounting data is vital tool for all these responsible for taking decision in any business organisation. It is immaterial whether the business in question is a private or public venture. The scale of operation does not matter also. However, the tool becomes increasingly
Relevant as the manager’s responsibilities broaden with business expansion and complexity.
Proper accounting is in no doubt enhances effective management decision-making. Many Accounting ideas and data help the management in performing its functions.
This study concentrates on the proper accounting information in management decision-making in public liability companies especially ALO-ALUMINUM COMPANY ENUGU.
Every establishment has its peculiar structure and its designed duties for the customers. In view of this therefore, proper accountability is required for the overall growth of the business.
The major role of accounting be it government or private is to provide useful information for assessing management’s performance and stewardship.
However, there are some questions, which the managers or owners of the business would like to know –
- Whether or not the business is operating at a profit or not.
- Whether or not the business will be able to meet its obligations as they fall due.
- Fiscal compliance (whether financial related laws and regulations were followed.
The above questions required positive answers. Some companies in spite of availability 3m (labour, materials and money) still performed below the expectation. The reasons for their failure include lack of effective management information improper accounting records in the business operation.
In summary, the kind of information which account provide is useful to managers, owners, investors, bankers, lawyers, even to the house wives who practice door to door petty businesses.
- STATEMENT OF THE PROBLEM
These include:
- In proper accounting records and report to the public on the financial position of an organisation.
- In proper execution of accounting information in an organisation.
- The primitive system of Accounting
- Inability to ascertain the financial position of organisation.
- In proper guide to future policy.
- PURPOSE OF THE STUDY
Based on the above problem defined, the following are the objectives.
- To find out the proper ways of recording and reporting the financial position of an organisation to the public.
- To establish the accounting information properly in an organisation.
- To ascertain the modern system of accounting
- To find the performance of an organisation in terms of profitability or solvency.
- To determine what future will look like.
- SCOPE OF THE STUDY
In this study, the scope on the proper accounting information as a tool for management decision-making is centred on ALO-ALUMINUM LTD. ENUGU base.
1.5 RESEARCH QUESTIONS
- To what extent will proper accounting record and reports be helpful to the public to know the financial position of an organisation?
- How does modern system of accounting information helps in an organisation.
- To what extent does accounting help in planning and control in an organisation.
- To what extent does accounting date play a role in the performance of an organisation?
- How useful is accounting information to a business in terms of profitability or solvency?
1.6 HYPOTHESES
Hypothesis is defined as a guess that is possible solutions to a problem. Hypothesis test events to determine the type of material. May be viewed, on the other hand, is a tentative solution of the research problem.
Therefore, one hypothesis will be tested both in null and alternative forms. The alternative hypothesis is state below:
H0: For null and Hi for alternative
H1: There is significance relationship between senior and junior staff of ALO-ALUMINUM ENUGU, on the need for proper accounting information in their establishment.
H0: The null hypothesis is that there is no relationship between senior and junior on talking the problem of proper accounting information in their establishment.
1.7 SIGNIFICANCE OF THE STUDY
The study will highlight on the need for controlling a business by way of keeping accurate records of a business transaction, preparing form those records useful information for management use.
According to White Head (1977) “Accounting is the art of controlling a business by keeping accurate-keep-keeping records, preparing from those records certain statistics called accounting ratios, using those ratios to detect financial difficulties before they become serious, so that center measure may be taken.
The roles of manager (financial) are considerably different from what it was in the past and will no doubt continue to change. Managers of various business enterprises must grow to accept the changing environment and master its challenges.
Financial function of raining and use of money has a very significant effect on the other functions. One of the primary functions of managers is to procure funds, allocation of capital, management of assets and valuation of the form in the overall market.
Probably, there are two main questions that the managers or owners of the business want to know-first whether or not the firm as operating at a profit. Secondly, whether or not the business will be able to meet its commitments as they fall due. Accounting idea and data provides answers to the above questions.
Financial manager (Accountant) is duty bound to prepare his accounting information in compliance with the status and standard set by the accounting professional bodies. The main information supplied by the accounting is known as corporate report, financial statement, or final account. He supplies potentially useful information to the investors, creditors, employees, track unions, and related groups, consumer, government and its agencies, business and financial analysis as well as management.
The whole of financial accounting is based on the accounting equation. The accounting equation is expressed in financial statement called the “Balance Sheet”. Accountant is responsible for directing, controlling, coordinating the work of the bookkeeping stall.
REFERENCES
Favel, A. J. (1980); Practical Book-keeping and Accounts University Tutorial Press Ltd. London.
Wood, F. (1982); Business Accounting 1 Uk. London Group
White-Head (1977); Principles of Accounting London, Core and Wyman
Etuk-Udo, J. S. (1976); Principles of Accounts for West Africa. London Oxford University Press.
Download our android mobile app for more materials
ORDER NOW
COMPLETE MATERIAL COST N2,500 Or $10. FRESH PROJECT MATERIAL COST 50,000 NAIRA FOR UNDERGRADUATE, OTHERS 100,000 -200,000 NAIRA.
THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
MAKE YOUR PAYMENT INTO ANY OF THE FOLLOWING BANKS:
GTBANK
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
Account Name : Host Link Global Services Ltd
ACCOUNT NUMBER: 0138924237
First Bank:
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Account Name: Chi E-Concept Int’l
Account Name: 3059320631
Foreign Transaction For Dollars Payment :
Bank Name: GTBank
Branch Location: Enugu State,Nigeria.
Account Name: Chi E-Concept Int’l
Account Number: 0117780667.
Swift Code: GTBINGLA
Dollar conversion rate for Naira is 175 per dollar.
ATM CARD: YOU CAN ALSO MAKE PAYMENT USING YOUR ATM CARD OR ONLINE TRANSFER. PLEASE CONTACT YOUR BANK SECURITY FOR GUIDE ON HOW TO TRANSFER MONEY TO OTHER BANKS USING YOUR ATM CARD. ATM CARD OR ONLINE BANK TRANSFER IS FASTER FOR QUICK DELIVERY TO YOUR EMAIL . OUR MARKETER WILL RESPOND TO YOU ANY TIME OF THE DAY. WE SUPPORT CBN CASHLESS SOCIETY.
OR
PAY ONLINE USING YOUR ATM CARD. IT IS SECURED AND RELIABLE.
form>DELIVERY PERIOD FOR BANK PAYMENT IS LESS THAN 24 HOURS
CALL OUR CUSTOMERS CARE OKEKE CHIDI C ON : 08074466939,08063386834.
AFTER PAYMENT SEND YOUR PAYMENT DETAILS TO
08074466939 or 08063386834, YOUR PROJECT TITLE YOU WANT US TO SEND TO YOU, AMOUNT PAID, DEPOSITOR NAME, UR EMAIL ADDRESS,PAYMENT DATE. YOU WILL RECEIVE YOUR MATERIAL IN LESS THAN 2 HOURS ONCE WILL CONFIRM YOUR PAYMENT.
WE HAVE SECURITY IN OUR BUSINESS.
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