CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The ultimate objective of all business undertaking is making profit. It would be very difficult, if not impossible to ascertain whether a business is making a profit or loss without the keeping of complete and up to date records of accounts. There is a common misunderstanding among new traders that everything that remains is their aim after paying for goods is profit. This obviously not true, it is of pay amount importance for any business man is general and new trader in particular to be able to calculate the firm’s profits correctly. A mistaker could lead to serious consequences goods may not price accordingly and a lot of unnecessary assumptions of big profits (Robbins and Decenzo, 1995). Again, most new traders depend on business for their livelihood. How much they should draw from the business for their personal use should depend almost entirely on the profitability of a business, a trader who is enable to ascertain his profit with a faire degree of accuracy is liable to make excessive drawing which could make it very difficult for him to meet business commitment. (Lassort and Clavier 1989) considering the above scenario, accountant plays accounting record in multinational business enterprises because; condition a business involves a number of transaction.
Every transaction affects the financial position of the business. The multitude of this transaction forbids any attempt to trust all or any of them to memory. A proper record should therefore be kept of that at any required (Akpan 1999) moment a reference can be made to the records to find the effect of each transaction and the combine effect of the transactions. Akwa Ibom State is one of the developing states in Nigeria, more than 50 percent of the people are found to be engaged in agricultural sector and the rest are employed in service and industries. Unemployment is approximately 40 percent and the state lacks skilled manpower. However, the productivity of agriculture is falling down and the population of the state is at an increasing trend. Therefore, the traditional occupation is not enough to meet the growing need of the Akwa Ibom people. Now the people have started to think about the alternative source of income where financial institution defined by Ande (2008) as all business organization which hold money for individual and may borrow from them in order to give loan or make other investment; have been regarded to be the core alternative way of solving the problem.
It is observed that the strength of its business development recently, financial needs of the economy development has been increased in size because of inadequate finance by the sole proprietor, partnership, entrepreneurs and investors. LG Company in particular has been offering assistance to this inscrutable sub-section of the economy. LG electronics company has expose people of Akwa Ibom to know and enjoy the benefit of electronic offered by LG company to their customers. The company has in many occasions been recognized as the major source of economics development especially through facilities like electronics.
1.2 Statement of the Problem
A number of business organization are yet to understand the fact that without accurate accounting record about their organization the perpetual and profitable existence of such activities is threatened. Since accounting information help in no meager measure in the attainment of the corporate goal of any organization this research intends to look at the problems drawn out by the following questions, the problems is: Lack of good accounting technique Lack of adequate information for managerial decision making. Poor price allocation techniques Lack of record for assessment enterprise ability Lack of adequate delegate to duties.
