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The Impact Of Accountancy Information On Decision Making Process
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1.7 SIGNIFICANCE OF THE STUDY
This research study
will help to maximise the beneficial impact of accounting information on
the decision making process of an organization. This boosts the
profitability of the organization as well as ensuring its continuity as a
business entity.
It will help in the efficient allocation of
scare resources that have alternative being use as well as increase
productivity thereby uplifting the standard of living. It will review
the improvement in the organization or company handling the accounting
information and show equally the ways through which improvement could be
accomplished.
In fact, all interested groups like shareholders, employers, investors, creditors, government etc will benefit immensely.
This project will equally serve as a reference to student who may be interested to embark on a research of this nature.
1.8 DEFINITION OF TERMS
EFFETIVENESS:
The total or actual interest paid or earned in a year, expressed as a
percentage of the principal amount at the beginning of the period.
EFFICIENCY:
A measurement of the ability of an organization to produce and
distribute its product. In accounting terms it is qualified by a
communism of the standard hours allowed for a given level of production
and actual hour taken.
ACCOUNTING INFORMATION: This is a system
designed to obtain the financial position of an organization as at the
end of the period.
INFORMATION: Is a processed data used in obtaining detailed data about a particular person, thing or place.
LEVERAGES: They are used by companies of its limited assets to guarantee substantial loans to finance its business.
FINANCIAL
INFORMATION: This is information summarized by a company’s activities
over the last year. They consist of the profit and loss account, the
cash flow statement etc.
ANALYSIS: In standard costing and budgetary
control, analysis of various in order to seek their causes. The total
profit of various is analysed into sub – variance indicating the major
reasons for budged figures.
DEBT: A sum owned by one person or
organization to a person showing that the debt to be required to be
settled within one accounting period.
RATIO: To put company’s
performance in percentage. The use of accounting ratio to evaluate a
company’s operating performance and financial stability.
DECISION
MAKING: This is the end of deciding between alternative courses of
action. Running of a business, accounting information and techniques are
used to facilitate decision models such as discounted cash flow.
IMPACT:
This means the duties responsibilities and functions. As it has to do
with work, it is that fundamental obligation incumbent on the public
relations for the attainment of democratic order in the organization
policy.
Accounting: Is the process of producing needed information
regarding primarily the financial activities of economic entities by
Bartho N. Kezee 1996.
The wide scope of accounting can be recognized
when one considers the diversity of economic entity which cut across
sizes and bounders.
Accounting is the language used to cover the
result of the entity’s endeavours, to the interested parties inform of
financial statement and the financial statement has been identified as
follows: Statement of accounting policy. Balance sheet. Profit and loss
account (income statements). Notes on the accounts. Statements of source
and application of funds. Value added statement. Five years historical
summary.
INFORMATION ON DECISION MAKING PROCESS
Information
consists of data that have been retrieved processed or used for
information purposes and as a basic for forecasting and decision making
process
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