The Impact of Accounting Records on Performance of Business Organisations

The Impact of Accounting Records on Performance of Business Organisations

Project / Seminar Material
Reference ID: PS-8531-TM

DEDICATION

This research material titled “The Impact of Accounting Records on Performance of Business Organisations” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Accountancy / Accounting, Book Authors and Profound Scholars of existing or related project material on “The Impact of Accounting Records on Performance of Business Organisations” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

The Impact of Accounting Records on Performance of Business Organisations

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

  • 1.1 Background of Study
  • 1.2 Statement Of The Problem
  • 1.3 Aim and Objective Of The Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of Study
  • 1.7 Scope Of The Study
  • 1.8 Limitation of the study
  • 1.9 Definition Of Terms

CHAPTER TWO

LITERATURE REVIEW

  • 2.1 Introduction
  • 2.2 Conceptual Review
  • 2.2.1 Accounting Record Keeping Concept
  • 2.2.1.1 Accounting Record Keeping Procedures
  • 2.2.1.2 Accounting Record Storage and Retrieval
  • 2.2.2 Bookkeeping Methods
  • 2.2.2.1 Single Entry Book keeping System
  • 2.2.2.2 Double Entry Bookkeeping System
  • 2.2.2.3 Cash Book or Cash Account
  • 2.2.3 Benefits of Book Keeping
  • 2.3 Relationships between Accounting Records and Performance
  • 2.4 Theoretical Framework
  • 2.4.1 Decision Usefulness Theory
  • 2.4.2 Small and Medium Enterprises
  • 2.5 Problems of Manual Record Keeping
  • 2.6 Computerized Accounting System
  • 2.7 Importance of Record Keeping and Business Performance
  • 2.8 Empirical Review

CHAPTER THREE

RESEARCH METHODOLOGY

  • 3.1 Introduction
  • 3.2 Research Design
  • 3.3 Population of Study
  • 3.4 Sampling Technique
  • 3.5 Research Instrument
  • 3.6 Method of Data Collection
  • 3.7 Method of Data Analysis
  • 3.8 Questionnaire
  • 3.8.1 Interview
  • 3.8.2 Key Informants Interview
  • 3.8.3 Observation
  • 3.9 Statistical Analysis

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

  • 4.1 Introduction
  • 4.2 Presentation and Analysis of Data
  • 4.3 Test of Hypothesis 1
  • 4.4 Test of Hypothesis 2
  • 4.5 Test of Hypothesis 3
  • 4.6 Discussion of Findings

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

  • 5.1 Introduction
  • 5.2 Summary
  • 5.3 Conclusion
  • 5.4 Recommendation

REFERENCES

APPENDIX A - “QUESTIONNAIRE”

ABSTRACT

The study investigates the study is to examine the Impact of Accounting Records on Performance of Business Organisation in Nigerian bottling Company PLC in Ado-Odo/Ota Local Government. In achieving this aim, the following specific objectives were laid out to determine the nature of accounting records, determine the standard and relevance of accounting information, appraise the impact of accounting records on the performance of business organization, and determine the impact of accounting records on the performance of Nigerian bottling company plc. The research design used in this report is descriptive design, utilizing questionnaire method to obtain information from the respondents for this project. Primary data were collected from the primary source which questionnaire was used as an instrument of data collection while secondary data were sources from textbooks, journals, newspapers and the internet were employed. The data were presented on a frequency distribution table and analyzed using simple percentage, while hypothesis was tested using chi-square test. Following the outcome of this study, it is therefore concluded that that there is a strong positive relationship between accounting records keeping and performance of small scale enterprises. Accounting records keeping is essential for decision making which invariably affects performance of small scale enterprises. Based on the findings, it was recommended that the owners and managers of the small scale enterprises should embrace proper accounting records keeping practices for effective financial performance in their business.

The Impact of Accounting Records on Performance of Business Organisations

CHAPTER ONE

1.0 Introduction

1.1 Background of Study

The impact of Financial Accounting Reporting on the corporate performance of Business Organizations”, basically aims at ascertaining how financial accounting reporting has helped in advancing the objectives of corporate organizations. In the process, it investigated the effect that financial accounting bear on the performance of a business. Furthermore, it sought to ascertain the compliance of relevant statues by corporate organizations and the overall satisfaction of stakeholders in corporate organizations.

Problems inherent in financial reporting ranges from non-disclosure of vital information, subjective judgments of financial information and most times non-compliance to relevant statues. There were recommendations given such as strict compliance to the relevant statute. The government needs to strengthen its regulatory agencies in order to ensure that the financial statements show a “true and fair view and comply with the relevant statues at all times. The research shall therefore seek to determine the impact of accounting records on the performance of Business organization.

Therefore, in Ado-Odo/Ota Local Government Area where the research was carried out, the activities that was conducted is to know the Impact of Accounting Records on Performance of Business Organisation.

1.2 Statement Of The Problem

The basis of this research lies with the deficiencies in the preparation and presentation of accounting records ranging from non disclosure of vital and sufficient financial information to non compliance to standard accounting regulatory framework. The consequence is that it is difficult to determine the true and fair view of the financial position of the organization and the corporate performance of the organization. It is in this perspective that the research intends to investigate the impact of accounting records on the performance of business organization. with a case study of Nigerian bottling company plc.

1.3 Aim and Objective Of The Study

The aim of the study is to examine the Impact of Accounting Records on Performance of Business Organisation in Nigerian bottling Company PLC in Ado-Odo/Ota Local Government. In achieving this aim, the following specific objectives were laid out as follows:

  1. To determine the nature of accounting records
  2. To determine the standard and relevance of accounting information
  3. To appraise the impact of accounting records on the performance of business organization
  4. To determine the impact of accounting records on the performance of Nigerian bottling company plc

1.4 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

  • What constitute the nature of accounting records?
  • What are the standard and relevant information of an accounting record?
  • What are the types of accounting records?
  • What are the impacts of accounting records on the performance of business organization?
  • What are the impacts of accounting records on the performance of Nigerian bottling company?

1.5 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

  • H0: The level of accounting information in NBC is low
  • H1: The level of accounting information in NBC is high

Hypothesis Two

  • H0: The standard of accounting records in NBC is low
  • H1: The standard of accounting records in NBC is high

Hypothesis Three

  • H0: The impact of accounting records in NBC is low
  • H1: The impact of accounting records in NBC is high

1.6 Significance of Study

The following are the relevance of the research work;

  • The study shall provide an analysis of the nature of accounting records of business organization
  • The study shall provide standard accounting regulatory framework
  • The study shall provide the needed information on the impact of accounting record on the performance of business organization
  • The study shall serve a reference point for managers, accountants and financial analyst.

1.7 Scope Of The Study

The study focuses on the appraisal of the Impact of Accounting Records on Performance of Business Organisation in Nigerian bottling Company PLC in Ado-Odo / Ota Local Government Area in Ekiti State.

1.8 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

  1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
  2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
  3. Research material: availability of research material is a major setback to the scope of the study.
  4. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
  5. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

1.9 Definition Of Terms

Micro-Finance:

A very small deposit and loans are refer together as microfinance (Johnson, 1999).

Control:

This is concerned with the efficient use of scarce resources to achieve a previously determined objectives or set of objectives contained with a plan (Lucey, 2000).

Fraud:

When a person dishonestly with a view to gain for himself or another or with intent to cause loss either destroys, defaces, conceals or falsify an account or record or makes an account to his knowledge is misleading, false or deceptive (Alan 1984).

Mismanagement:

This is the deliberate use of funds meant for other things, for personal activities.

Small Scale:

Not large in size or extent, limited in what it does and in relation to organization.

Transaction:

A piece of business that is done between people especially an act of buying and selling or service rendering.

Filing System:

The act of putting several documents letters together or placed in an official record for the purpose of safeguarding and evidence of transaction.

Organization:

A group of people who form a business together in order to achieve a particular goal.

Policy (IES):

A set of interrelated and consistent plan and decision rules (Premehad, 1996).

…

CHAPTER TWO

2.0 Literature Review

2.1 Introduction

This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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