TABLE OF CONTENTS
Title Page i
Approval page ii
Dedication iii
Acknowledgement iv
Table of contents v
Abstract viii
CHAPTER ONE
Introduction
Background of the study 1
Statement of the study 2
Purpose of study 3
Research question 5
Significance of study 5
Scope of study 5
Limitation of study 6
Operational definition of terms 6
CHAPTER TWO – Literature Review
Introduction 7
Meaning of Accounting Terms 7
Characteristics of Financial Report 9
Constraining Quality 10
Basic Accounting Concept 11
Limitation of Financial Report Analysis and Interpretation 14
Statement of Change in Financial Position 17
CHAPTER THREE – Research methodology
Introduction 19
Research design 19
Population of the study 19
Sampling size 20
Sampling procedures 20
Research instrument 20
Sources of Data 21
Data collection Method 21
Method of data analysis 21
CHAPTER FOUR – Presentation and data analysis
Introduction 23
Data Presentation and Analysis 23
Method of Data Analysis 29
Hypothesis Testing (Formula Used) 29
CHAPTER FIVE – Summary, Conclusion and Recommendations
Summary 31
Findings 31
Conclusion 32
Recommendations 32
References 34
Appendix 35
Questionnaire 36
CHAPTER ONE
INTRODUCTION
Background of the Study
This chapter tends to explain the historical perspective of financial recording in an organisation. The basic purpose of financial record is providing financial information about a business enterprise or any other economic activity. Accounting and book-keeping sections are responsible for financial record of every business organisation. Accounting is concerned with the measurement and communicating information in decision making, while book keeping records the business transaction in a systematic way such that the financial position of the business can be readily ascertain.
According to Emmanuel (2004), financial report is very useful to management and outsiders such as government agencies, bankers, investors, etc. for decision making. An accounting system provide some account information such as:
Recording business event
Classification of the event into related groups.
Summarizing this information into accounting records.
Communicating the accounting information to in a form that will be meaningful to the user; hence accounting can be defined as the measurement and communication of information that aid decision making.
Accounting has been defined as a measurement and communication system that make economic and social information available for decision making. The purpose of book –keeping and accounting is to provide information about business and non-business organisation which will help in making judgment about the organisation. The major purpose of book keeping in accounting is to keep accurate financial record.
According to Goddey (2000), financial accounting is an information system which had an effect on the management of any business whether the business is a company or sole proprietorship. Though financial accounting information plays an important role within the organisation, yet some businesses has personally carryout their business without the use of such information aid as a result many of them have ended having business failure. One would like to know the effect of this financial accounting report on the management of business entry. This is the focus problem of this research study.
Statement of the Problem
Financial report is to provide report to management, shareholders and the public. It reveals to the owners of the business the position of the entry as at that date.
It has been observed that most organisation and public sector do not prepare financial report to the shareholders and for the public to see. Hence, this research work is carried out in order to enlighten and educate the management and staff of both private and public organisation the need to always prepared their financial report. This will help all the parties involved to know the financial state of the business.
The problem of report, or the effects of financial report on management of business organization is financial statement manipulation, which is an ever present problem for investors.
Financial statement manipulation is an ongoing problem in corporate America. Although the Securities and Exchange Commission (SEC) has taken many steps to mitigate this type of corporate malfeasance, the structure of management incentives, the enormous latitude afforded by the Generally Accepted Accounting Principles (GAAP) and the ever present conflict of interest between the independent auditor and the corporate client continues to provide the perfect environment for such activity. Due to these factor, investors who purchase individual stocks or bonds must be aware of the issues, warning signs and the tools that are at their disposal in order to mitigate the adverse implication of these problems.
