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ABSTRACT: Effort is made to access the effect of formal accounting reporting on the management of a business financial accounting covers those activities related to the preparation of certain reports which are known as financial statements. These statements report the financial status of a firm at a particular time. The firms activities and resulting profit/losses during the most recent period and the flow of resources occurring within the firm during the same period. I draw my research from the work of many authors. Such work done have included textbooks in all forms, magazine and Encyclopedias. Apart from extensive use of literature, other method of research include (a) interview with businessmen. (b) Questionnaires have been designed and distributed to some businessmen (especially at trade fair). The questionnaires have been designed for officers  in management cadre in public and private companies, shareholders, staff, partners and owners in sole proprietorship 

CHAPTER ONE

1. Introduction                                                                           1
   1. Statement of problem                                                              3
   2. Purpose of the study                                                               3
   3. Significant of the study                                                           4
   4. Statement of Hypothesis                                                         5
   5. Scope of the study                                                                  6
   6. Limitation of the study                                                            7
   7. Definition of terms.                                                                 8

 

CHAPTER TWO

1. Review of Related Literature                                                  11
   1. Accounting as a language of business                                  11
   2. Users of accounting information                                          13
   3. Characteristics of good information                                     17
   4. Management of information                                                19
   5. Basic accounting concept                                                     25
   6. The financial accounting branch                                          25
   7. Other accounting branches.                                                 27

CHAPTER THREE        

1. Research design and methodology                                         30
   1. Sources of data                                                                     31
   2. Sample Size                                                                          32
   3. Method of investigation                                                        32

CHAPTER FOUR

1. Data presentation and analysis.                                              36
   1. Data presentation and analysis.                                             36
   2. Test of hypothesis.                                                               43

CHAPTER FIVE

1. Summary of findings, conclusion and recommendation.       50
   1. Findings                                                                                          50
   2. Conclusion                                                                            51
   3. Recommendation                                                                   53

Bibliography                                                                         55

Appendix                                                                              57

CHAPTER ONE

  INTRODUCTION

          Financial accounting covers those activities related to the preparation of certain reports which are known as financial statement. These statements reports the financial status of a firm at a particular time the firms activities and resulting profit or losses during the most recent period and the flow of resources occurring within the firm during the same period.

          This statement made by A. THOPSON MONTAOMERY gives us an idea on the meaning of financial accounting. However the question arises what are the efforts of these financial account reports in the management of business? The answer poses a problem which the paper will seek to solve. Not all business persons understand the impact of financial accounting information on the management of their business, some manages business intuitively. Other, like traffic defaulters who disobey road signs, disobey the warning of communicated by financial accounting information and end up in a “Business Accident”

          There are other sources of information which have impact on the management of Business and the combination of these sources give an information system in the complex nature. As FARM WOOD puts it, “it must not be thought that accounting of any form is the management control system. Instead it is part of it”. But accounting information is the only system through which both mangers and external users get a picture of the organization as a total entity.

          Moreover, financial accounting information usually comes in the disguised form by “wearing” the cloak of technicalities. Such technicalities include calculation which need expert knowledge in its interpretation. But when some business because of low financial layout, cannot employ such experts hands, they tend to ignore financial accounting information system which has an effect on the management of any business concern. The problem is: Do all businessmen know this? This is the question that the researcher seeks to answer also.

1.1     STATEMENT OF THE PROBLEM.

          Is very important for the functioning of any business. The finacial accounting system in most business organization do not potrary fully the principles of accounting systems. The flow of information, the cost of collecting any information and the internal control procedures have some loops holes.

          In reality, it would be impossible for the researcher to stu

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