ABSTRACT
The topic “the effect of financial report on the management of a business” is very important in every existing business. Through the finding and summarization of this topic you will find out that keeping of financial accounting report could make important and effective contributions to the success of any enterprise. It equally creates information to business management and to different people and groups. The information gotten from this report will help the management in decision making and enhancing profitability of the business. Financial accounting report are needed by every establishment both profit and non-profit making o effect the achievement of the ultimate goals. Though financial accounting information report has both favorable and unfavorable effect on the management of a business, different firms may be using different accounting methods or options. This makes it extremely difficult for proper comparisons to be carried out. The diversification of firms may different markets and industries adds to the difficulty of comparisons cause one does not know which industry to classify firm, which has markets in more industries than one. Despite the inherent limitations of information derived from the analysis and the interpretation of the financial statement are still indispensable. The financial accounting information is derived mainly from four statements, the position statement (balance sheet), and income statement, statement of source and application of funds and the value added statements.
LIST OF TABLES
TABLE 1;
Do internal control play important role in the management of a business? (Question 1)
TABLE 2; is financial report very necessary in business management?
(Question 8)
TABLE 3; is there any need for accounting to supply to its owners information about business.
(Question 9)
TABLE 4; do financial accounting report contributes to national development
(Question 11)
TABLE 5; do managers of a business involve in management decision?
(Questions 7)
TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
CHAPTER TWO
LITERATURE REVIEW
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research design
3.2 Area of study
3.3 Sources of data
3.4 Instrument / data collection
3.5 Method of data analysis
CHAPTER FOUR
DATA ANALYSIS
4.1 Analyses of data
4.2 Data presentation
4.3 Test of hypothesis.
CHAPTER FIVE -FINDINGS / SUMMARY AND RECOMMENDATION
Bibliography
Appendix i
Appendix ii
CHAPTER ONE
The effect of a report on the management of a business cannot be neglected in the modern world today.
In other words, it is important in the management of any business.
In furthering the effects of financial report on the management of a business, it enhance a at a glance the financial management / report at any point in time.
It makes all the affairs of any management clear to any audition, management or otherwise. The management of any business totally depends on the financial report /statement of such establishment.
In internal control system, the financial accounting contributes much in the progress and in the controlling of any management.
It is not only enhancing progress also it safe guards the organization against waste fraud, inefficiently and promote accuracy and reliability of accounting information at all time
Financial accounting covers those activities related to the preparation of certain reports, which are known as financial statement. Those statements reports the financial status of affirm at a particular time, the firms activities and resulting profits and losses during the most recent period, and flow of resources occurring within the firm during the same period.
The statement made by THOMPSON MONTGOMERY, gives us an idea of the meaning of financial accounting. However the question arise; what are the effects of this financial accounting reports on the management of a business, the answer to the question posses a problem, which the paper will seek to solve.
Not all business people understand that impact of financial accounting information on the management of their business. Some manage business inattentively. Others, traffic defaulters who disobey road signs, disobey the warnings communicate by financial accounting information and end up in a “business accident” there other sources of information which have impact in the management of business and the combination of those sources gives an information system its complex nation as FRANK WOOD, puts it, it must not be thoughts that accounting of any form is the management control system. Instead it is a part of it. But accounting information is the only system through which both managers and extreme users get a picture of the organization as a total entity; moreover, financial accounting information usually comes in a disguise form by “wearing the goal of technical. Such technicality includes calculators which needs expert knowledge in its interpretations. But when some business because of low financial layout cannot employ such expert’s hands, they tend to ignore financial accounting information.
Financial accounting is an information system’ which has an effect on the management of any business is a co-operation, company or sole proprietorship business concern. The problem is, do all businessmen know this? This is question the researcher seeks the answer.
1.2 STATEMENT OF THE PROBLEM
the basic fundamental benefits of financial accounting reports on the management of business includes; accuracy, where all information must be as accurate as required for the purpose relevant, where information also should be sufficiently analyzed o that irrelevant information or unusual circumstances are excluded and ensuring that decisions are not made in the light of super flow facts. Timing; where timing of information is critical whether to have a sufficient detail before embarking on a new project. The accounting should ensure that information going to the management meets the mentioned time that will help a faster and quicken the decision making process
The goal of every business is (or should be) profit optimization. The management of most business exists primarily for this purpose. Whether the business is owner managed or ownership is separated from the management, the rules for profit optimization (or maximization as some books may chose to call it) is still the same profit optimization in the paper because optimization has a social effect.
The management is able to do this, as long as they are able to use their financial resources profitably. And to use their financial resources profitable, they must know the effect which financial accounting information has on the management of a business
Financial accounting measure by means of the reports they prepare , the extent to which management has succeeded in their goal of profit optimization.
The report, which serves as financial accounting information are;
The oxford advance learns dictionary of English discusses effects as “the influence one evident has on another) it can, therefore be good or bad.
b) Financial Accounting
financial accounting (is concern with the recording of transaction for a business on enterprises or other economic units and records ) financial accounting can then be said to be a systematic gathering, identifying, summaries and reporting of business transactions in monetary terms such that it provides information which permits informed judgment by the users of such information.
c) INFORMATION OR REPORT
This can be thought of as being factor needs or received by a person, or group of persons, which is or will be useful to him. Those information or reports may be spoken, written, programmed or teleprinted.
d) MANAGEMENT;
Management can be defined as the rational selection of courses of action to optimize the inter-relationship of man, materials and money for survival and growth of the organization. It can also be regarded as “the process of getting things done through people. A person who manages is called a manager.
e) BUSINESS:
Business is a process whereby human, material and capital resources are combined. Information of one accounting period had an impact on the future achievement of the business. This effect now becomes the goal of this researcher. The researcher seeks to know more about thus effect, (i.e the financial accounting effect on the management of business) and also advices all business persons on the effect
Hypothesis is define by the cyclopedia Americas “a preposition assumed to be true merely for purpose of argument or a preposition or theory put forward to account for and to order a body of fact”.
HO: there is no common need for accounting to supply to its owners information about the business
Hi; there is common need for accounting to supply to its owners information about the business
Ho: neglect of financial accountancy report will have no adverse
Hi: neglect of financial accountancy report will have adverse effect on the business.
The following terms are defined in this section
To earn profit and satisfies needs and wants. An entity, which carries on such organized efforts, is known as a business entity
1.6 LIMITATIONS OF STUDY
A voluminous work would result as it where in all research work done on all parts of accounting infor
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