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COMPUTER AN IMPORTANT SYSTEM IN THE PROCESSING OF ACCOUNTING INFORMATION

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COMPUTER AN IMPORTANT SYSTEM IN THE PROCESSING OF ACCOUNTING INFORMATION

ABSTRACT

This project is on computer an important system in the processing of accounting information the question is, to what extent is computer recreant in the processing of accounting information.

          Technology affords better ways of doing things. No one doing serous business today will claim to be totally oblivious of the importance of computers are vary helpful and generally time saving, some business can still so without it.  Therefore while considering if to get computer one should be rational and really should evaluate the benefits derivable from a computer by the business visa-vis the planned investment outlay.

          It is against this background that the major concern of this research was made to identify desirable from computerization of accounting information system.

          Chapter one, is the introductory chapter.  It gives an over view of the research.  It examines the research problem the statement of problem the purpose of the study significance, scope and limitations of study, research hypothesis and definition of some terms.

          Chapter two provides a working definition on related literature. The following were considered.  The computer, organization of accounting information system, impact/ relevance of computer in processing of accounting information planning for a computerized accounting system, benefit / cost of computerization in an organization and doing business without computer.

          Chapter three examines the research methodology used in the study, it describes research design, analysis procedure, source of data, collection of data, population and description of questionnaires.

          Chapter four presents the result of the data analysis and the testing of hypothesis.  Chapter five discusses the research findings based on data analysis.  The conclusion of the research findings and recommendations are made in this chapter.

          It is hoped that this study will stimulate more research on related topics.  Finally, it is hoped that the findings from this study will add to the existing knowledge in administration.

DEDICATION

This project is dedicated to God, the solution to all my life’s questions.

TABLE OF CONTENTS

Title page                                                                                 i

The approval page                                                                            ii

Acknowledgement                                                                   iii

Abstract                                                                                  v

Dedication                                                                               vii

Table of content                                                                      viii

CHAPTER ONE

1.0            Introduction                                                                            1

1.1     Background of study                                                     1

1.2            Statement of the problem                                                        6

1.3            Research hypothesis / question                                               8

1.4            Significance of the study                                                         10

1.5            Scope and limitation                                                      11

1.6            Definition of terms                                                                  12

Reference                                                                       15

CHAPTER TWO

2.0            Review of related literature                                            16

2.1     The computer                                                                16

2.2            Organization of accounting inf. System                         19

2.3            Impact/ relevance of computer in

processing of accounting information.                                    21

2.4            Planning for computerized accounting system               26

2.5            Cost and benefit of computer to an organization           62

2.6            Business without computer                                           66

Reference                                                                       72

CHAPTER THREE

3.0            Research design and methodology                                 73

3.1     Research design                                                             73

3.2            Population                                                                     73

3.3            Sources of data                                                              74     

3.4            Data collection                                                               76

3.5            Data analysis procedure                                                          76

3.6            Description of questionnaire                                          77

CHAPTER FOUR                

4.0            Data presentation & analysis                                        79

4.1     Data analysis                                                                 79

4.2            Testing of Hypothesis                                                    92

CHAPTER FIVE

5.0            Findings, conclusion & recommendation                       115   

5.1     Summary of findings                                                     115

5.2            Conclusion                                                                     117

5.3            Recommendation                                                           118

Bibliography                                                                  119

Appendix i                                                                     121

Appendix ii                                                                    128

CHAPTER ONE

INTRODUCTION

1.1            BACKGROUND OF STUDY

The basis for financial planning and analysis is the financial information financial information is needed to predict, compare and evaluate the firms earnings ability it is  also required to aid in economic decision making investment & financial decision making.   The financial information of an enterprise is contained in the financial  statement or accounting report.

Accounting is the guide post for management every enterprise should know the activities carried on by it and the financial implication of its operations.  The financial score of an enterprise is kept by the accounting system accounting information unit in business context is a unit in an organization that processes transaction to provide score keeping.  It points out the problem faced or likely to be faced by the enterprise.  It also brings to the notice of the firm the opportunities that are likely to arise.  It indicates possible action, when needed.  Accounting is the process of identifying, measuring and communicating economic information to permit judgment and decision by users of the information.

Accounting information could be classified under two heading or three headings.  Under two headings.  It is classified as.

1.                 Financial accounting which provides information about profit and loss and financial position of the organization at a given period and  management accounting which provides management information needed for planning and control in an organization.

Under three heading.   It is classified as:

i.        Routine – Internal report:  That is day to day reports to management for planning and control of the organization function for instance performance report financial reports and accounts.

ii.                 Non-routine report:  This aids management for examples budget forecast, estimates and projections and articulation of computer organizational goals.  No lay down format

iii.              External report :  this is for external interest groups like government and creditors.


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