+234 813 0686 500
+234 809 3423 853
info@grossarchive.com

ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENT AS A MANAGERIAL TOOL FOR DECISION MAKING

  • Type:Project
  • Pages:92
  • Format:Microsoft Word
(Accounting Project Topics & Materials)

Financial Statement Analysis and Interpretation is a very vital
instrument of good management decision-making in business
enterprise. Good decisions ensure business survival, profitability and
growth. Without financial statement analysis in investment decisions,
an enterprise is likely to make decisions, which could spell its doom.
Poor or lack of qualitative financial statement analysis could lead to
investment returns, low profitability and even inability to identify viable
investment opportunities. The main objective of this project is
therefore, was to determine how firms could use financial statement
analysis and interpretation to aid management decisions and to avert
the problems highlighted above. Primary and secondary data are
employed to broaden the scope of this study. Primary data are
sourced from questionnaire responses. This provided data for the
validation of the hypotheses tested with the use of chi-square (X2).
The test revealed as follows: (1) Significant difference between the
returns of the financial statement in Analysis and Interpretation based
on management decision. (2) Organizational profitability has
relationship with financial statement analysis and interpretation based
management decision but not significantly. The project concludes
that companies should pay great attention to the use of financial
statement analysis so as to properly equip themselves with this
invaluable tool. The researcher recommends the following: (a)
Accountants or financial analysts should not be rushed in collection,
preparation, analysis and interpretation off financial statements. (b)
Financial statements should be made to reflect current cost
accounting to eliminate or reduce the effects to historical cost
principle and inflation risk element. (c) A combination of different
ratios should be used in analyzing a company’s financial and/or
operating performance. Proper use of financial statement analysis
should be made not only in investment but also in other areas of
decision making.  

    TABLE OF CONTENT
Title page - - - - - - - -- - i
Approval page - - - - - - - - ii
Dedication - - - - - - - - - iii
Acknowledgement - - - - - - - iv
Abstract - - - - - - - - - v
Table of content - - - - - - - - vi
Chapter One: INTRODUCTION
1.1 Background of the Study - - - - - 1
1.2 Statement of Problem - - - - - - 4
1.3 Objectives of the Study- - - - - - 4
1.4 Research Questions - - - - - - 5
1.5 Hypotheses of the Study - - - - - 6
1.6 Significance of the Study - - - - - 6
1.7 Scope of the Study - - - - - - 7
1.8 Limitation of the Study - - - - - - 7
1.9 Definition of Terms - - - - - - 8
References- - - - - - - - 10
 

Chapter Two: LITERATURE REVIEW
2.1 Introduction - - - - - - 11
2.2 What is Financial Statement?- - - - 12
2.2.1 Objective of a Financial Statement Analysis - 13
2.3 Uses and Users of Financial Statement - - 14
2.4 Classification of Financial Statement - - 15
2.5 Relationship among the Statement of Financial
Position, Income Statement, Statement of cash
Flows and Statement of Retained Earnings - 18
2.6 Techniques and financial Statement Analysis and
Interpretation - - - - - - 19
2.6.1 Horizontal Analysis - - - - - 19
2.6.2 Trend Analysis - - - - - - 20
2.6.3 Vertical Analysis - - - - - - 24
2.6.4 Ratio Analysis - - - - - - 24
2.7 Definition of Ratio - - - - - 24
2.8 Types and Classification --- - - - 26
2.8.1Liquidity Ratios - - - - - - 27
2.8.2 Leverage Ratios - - - - - - 30
2.8.3 Activity Ratios - - - - - - 32


9
2.8.4 Profitability Ratios - - - - - 34
2.9 Nature of Accounting Ratios - -- - - 37
2.10 Uses of Ratio in Analyzing Financial Statement 39
2.11 Limitations of Financial Statement Analysis - 40
2.12 Use of Different Accounting Principles - - 40
2.13 Industry Affiliation - - - - - 41
2.14 Accounting Differences Between Countries - 42
2.15 The Impact of Inflation of Financial Statement
Analysis - - - - - - - - 42
2.16 Features of a Good Management Decision
Technique - - - - - - - 44
2.17 Environment of Management Decision Making- 45
References - - - - - -- - 47
Chapter Three
3.1 Research Design- - - - - - 4
3.2 Sources and Method of Data Collection --- - 48
3.3 Research Instrument - - - - - 49
3.4 Reliability/Validity of Research Instrument - 49
3.5 Population - - - - -- - - 50
3.6 Sample size and Technique - - - - 50


3.7 Administration of Research Instrument - - 53
3.8 Method of Data Analysis - - - - 53
3.9 Decision Criteria for Validation of Hypothesis - 56
References- - - - - - -- 57
Chapter Four: DATA PRESENTATION AND ANALYSIS -58
4.1 Data Presentation - - - - - 60
4.2 Analysis of Question - - - - - 61
4.3 Test of Hypothesis - - - - - 71
Chapter Five: SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings - - - - - 76
5.2 Conclusion - - - - - - - 77
5.3 Recommendations - - - - - 77
Bibliography - -- - - - - 79
Appendix - - -- - - - - - 80


 

ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENT AS A MANAGERIAL TOOL FOR DECISION MAKING

Share This

Details

Type Project
Department Accounting
Project ID ACC1900
Price ₦3,000 ($9)
No of Pages 92 Pages
Format Microsoft Word

500
Leave a comment...

    Details

    Type Project
    Department Accounting
    Project ID ACC1900
    Price ₦3,000 ($9)
    No of Pages 92 Pages
    Format Microsoft Word

    Related Works

    Abstract Financial Statement Analysis and Interpretation is a very vital instrument of good management decision-making in business enterprise. Good decisions ensure business survival, profitability and growth. Without  financial statement analysis in investment decisions , an enterprise is likely to make decisions, which could spell its doom.... Continue Reading
    Abstract Financial Statement Analysis and Interpretation is a very vital instrument of good management decision-making in business enterprise. Good decisions ensure business survival, profitability and growth. Without financial statement analysis in investment decisions, an enterprise is likely to make decisions, which could spell its doom. Poor... Continue Reading
    (A case study of First Bank of Nigeria Plc, Kaduna South Branch) TABLE OF CONTENT Cover... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1       BACKGROUND OF THE STUDY Financial reports provides an overview of a business profitability and financial condition in both short and long term. They are necessary sources of accounting information about companies for wide variety of users. In. every business, there, needs information. This information needs... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY Financial reports provides an overview of a business profitability and financial condition in both short and long term. They are necessary sources of accounting information about companies for wide variety of users. In. every business, there, needs information. This information needs ranges from... Continue Reading
    INTRODUCTION 1.1 BACKGROUND OF THE STUDY Financial reports provides an overview of a business profitability and financial condition in both short and long term. They are necessary sources of accounting information about companies for wide variety of users. In. every business, there, needs information. This information needs ranges from financial,... Continue Reading
     Role of financial statement in investment decision making   ABTRACT Corporate organizations owe a duty to fully disclose matters concerning their operations so as to aid investors in making investment decisions because Investment decision makers rely on information obtained from financial statements to predict future rates of return. Without... Continue Reading
    The research work covers the effect of financial accounting reporting on managerial decision making. The studies have the following objectives: To know whether the various ways of presenting financial accounting reporting have any effect on managerial decision making in the company. To examine the attitude of management in the allocation of... Continue Reading
    ABSTRACT Corporate organizations owe a duty to fully disclose matters concerning their operations so as to aid investors in making investment decisions because Investment decision makers rely on information obtained from financial statements to predict future rates of return. Without the financial statement, there will be a problem of how to... Continue Reading