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THE IMPORTANCE OF ACCOUNTING INFORMATION IN MANAGEMENT DECISION MAKING PROCESS (A STUDY OF AKWA IBOM WATER COMPANY LTD, UYO)

ABSTRACT

Information is a life-wire of every business organization. However, it is of various diversities, but accounting information was selected for this study on the grounds that some business organizations do not base their decision on the available accounting information, and therefore lack a controlling power on their incomes and expenditures. It was on this ground that the topic of this study “The Importance of Accounting Information in Management Decision Making Process” was derived and Akwa Ibom Water Company Limited was selected as a study area because of its current need to cover a wider area in Akwa Ibom State. The objectives of the study were to find out the roles of record keeping in decision making. To find out government roles towards the organization’s accounting information. Random sampling technique was used in questionnaire administration. Findings revealed that Akwa Ibom Water Company keeps and maintain accounting information which is the bedrock to which decision are based. The result was analyzed using sample percentage. Conclusion was drawn based on findings of the study. The company had identified the advantages of accounting records to include: performing its reporting function to government, controlling business activities and decision making, recommendations were suggested to include: Generally Accepted Accounting Principles (GAAP). Also, adequate internal control measures of accounting information should be adopted too. Independent reviews by Auditors are also necessary. Seminars, workshops for business owners should be organized to improve their accounting styles for effective decision making.

TABLE OF CONTENTS

Cover page

Title page

Certification        –       –       –       –       –       –       –       –       i

Dedication –       –       –       –       –       –       –       –       –       ii

Acknowledgement      –       –       –       –       –       –       –       iii

Abstract     –       –       –       –       –       –       –       –       –       iv

Table of content –       –       –       –       –       –       –       –       v

CHAPTER ONE: INTRODUCTION

1.1    Background of the study     –       –       –       –       –       1

1.2    Research Problem       –       –       –       –       –       –       3

1.3    Objectives of the Study       –       –       –       –       –       –       4

1.4    Research Questions    –       –       –       –       –       –       5

1.5    Research Hypothesis   –       –       –       –       –       –       6

1.6    Significance of the study     –       –       –       –       –       7

1.7    Scope of the study      –       –       –       –       –       –       8

1.8    Limitation of the Study –       –       –       –       –       –       8

1.9    Definition of Terms and Acronyms.       –       –       –       –       9

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1    Introduction       –       –       –       –       –       –       –      11

2.2    Early History, Meaning of Accounting/Accounting Information. –       –       –       –        –       –       –      12

2.3    The Flow of Information in Accounting  –       –       –      17

2.4    Users of Accounting Information   –       –       –       –      27

2.5    Problems Associated with Non-Keeping of Records of Transaction in an Organization.      –       –       –       –      34

2.6    The Manipulation of Financial Statement        –       –       –      36

2.7    Decision making, types of Decision and Decision Making Process     –       –       –        –       –       –       –       –      42

2.8    Approaches to Decision Making    –       –       –       –      46

2.9    Practical Application of Accounting Information to Effective Decision Making      –        –       –       –       –       –       –      47

2.10  The Importance of Decision Making to Management of an Organization    –       –        –       –       –       –       –      49

CHAPTER THREE: RESEARCH DESIGN AND PROCEDURES

3.1    Introduction       –       –       –       –       –       –       –      51

3.2    Area of the Study       –       –       –       –       –       –      51

3.3    Population of the Study       –       –       –       –       –      51

3.4    Sample Determination and Sampling Techniques    –      52

3.5    Sources of Data  –       –       –       –       –       –       –      53

3.6    Method of Data Collection    –       –       –       –       –      53

3.7    Data Presentation and Analysis Method.        –       –       –      54

CHAPTER FOUR:    

PRESENTATION AND ANALYSIS OF DATA

4.1    Introduction       –       –       –       –       –       –       –      56

4.2    Data Analysis and Result     –       –       –       –       –      57

4.3    Test of Hypothesis      –       –       –       –       –       –      59

4.4    Discussion of Findings –       –       –       –       –       –      63

CHAPTER FIVE:     

SUMMARY, CONCLUSION AND RECOMMENDATION

5.1    Introduction       –       –       –       –       –       –       –      65

5.2    Summary   –       –       –       –       –       –       –       –      65

5.3    Conclusion –       –       –       –       –       –       –       –      66

5.4    Recommendation        –       –       –       –       –       –       –      67

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