ACCOUNTING INFORMATION AS A TOOL FOR MANAGEMENT DECISION MAKING (A CASE STUDY OF FIRST BANK OF NIGERIA LIMITED ABDULLAHI FODIO ROAD BRANCH, SOKOTO)

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ABSTRACT


This research work highlights the result of a research carried out to examine the relevance of accounting information to management decision making in First Bank of Nigeria Limited, Abdullahi Fodio Road Branch. A substantial aspect of the study involved collecting data through the instrumentation of questionnaires and interview. The data collected were classified, analysed and the percentages of the findings presented in a table.


The hypothesis was then statistically tested with chi-square in which the calculated value of chi-square equals 14.357 and is greater than the critical value of 5.991. This result showed that accounting information is a tool for management decision making hence, the null hypothesis was rejected and the alternate hypothesis accepted. Based on the findings, it was recommended that managerial decision making in organisations should be an offspring of accounting information.


TABLE OF CONTENT

Title page
Abstract
Table of Content
Table of Analysis

CHAPTER ONE
1.0       Background of Study
1.1       Statement of Problem
1.2       Aims & Objectives
1.3       Significance of Study
1.4       Research Hypothesis
1.5       Scope of study
1.6       Limitation
1.7       Terminology
1.8       Historical Background of Case Study (First Bank of Nigeria Limited)

CHAPTER TWO
2.0       Literature Review
2.1       Accounting Information
2.1.1  Bookkeeping: An Accounting Process
2.1.2  The Computer: An Accounting Tool
2.1.3  Accounting and Management Information System (MIS)
2.2       Making Accounting Information be Reliable and True
2.4       The Users of Accounting Information
2.5       Standard for the Usefulness of Accounting Information
2.6       Types of Information needed in Decision Making
2.7       Other Characteristics of Accounting Information
2.8       Relationship between Accounting Information and Decision Making

CHAPTER THREE
3.0       Introduction
3.1       Research Design
3.2       Population of Study
3.3       Samples and Samples Techniques
3.4       Types and Method of Data Collection
3.5       Instrument for Data Collection
3.6       Method of Data Collection
3.7       The Chi-square

CHAPTER FOUR
4.0       Data Presentation and Analysis
4.1       Analysis and Interpretation of Questionnaires distributed
4.2       Analysis of Demographic/Socio-Economic data
4.3       Analysis of Data
4.4       Testing of Hypothesis
4.5       Findings

CHAPTER FIVE
5.0       Summary, Findings, Conclusion and Recommendation
5.1       Summary
5.2       Conclusion
5.3       Recommendation
Bibliography
Appendix


CHAPTER ONE


INTRODUCTION


BACKGROUND OF STUDY



Accounting is fundamentally a measurement and communication process used to report on the activity of profit and non-profit seeking organizations. In other words, it is concerned with the discipline of summarizing, recording, analysing and interpreting economic events and other financial activities. This process is performed by accountants who furnish management with the relevant information needed for effective and efficient decision making as to contribute to the quest for means of surmounting industrial, commercial, governmental and academic problems inherent in a dynamic and volatile socio-economic and political setting. The chambers 20th century dictionary defines information as “intelligence given-knowledge”. This is because reliable information is necessary before a sound decision involving the allocation of scarce resource (land, labour and capital) can be made, that is why accounting profession is dynamic and there is always the need for an accountant to continually update his/her knowledge of accounting portfolio. Accounting information is valuable because it can be used to predict the financial consequences of each alternative course of action. An organization needs quantitative information to function or make decision. Management uses the best available information system to provide management information which is used primarily to accomplish three broad purposes;

(i)                To provide financial statement to the interest of external users,


(ii)             To plan the organization activities and operations in both short and long run, and

(iii)           To control the result of its operations.


The American Accounting Association (1966) also defined accounting as “the process of identifying, measuring, and communicating economic information to permit informed judgements and....

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