THE PROBLEMS OF WORKING CAPITAL MANAGEMENT IN THE PRIVATE SECTOR.
This project work “The Problems of Working Capital Management in the Private Sector” affords the reader a step by step approach to the study of the rast filed of private sector and the problems encounter in the management of these private sector.The first chapter of this work provides relevant introductory materials and objectives guiding business within the region of private sector. The second chapter provides the central philosophy of a successful management, meaning of working capital management and the inefficient management of working capital. In this work, we shall come to know that profit is the sole aim of every business and must be targeted at any point in time. This work will help most especially the private sectors to know how to go about maximizing profit. I remain grateful to director school of financial studies Onovo and also to all my well wishers.
1.0 THE INTRODUCTION
1.1 BUSINESS GUIDING OBJECTIVES
2.0 CENTRAL PHILOSOPHY OF A SUCCESSFUL MANAGEMENT
2.1 THE MEANING OF WORKING CAPITAL MANAGEMENT
2.2 INEFFICIENT MANAGEMENT OF WORKING CAPITAL
1.1 BACKGROUND OF THE STUDY
Book-keeping is the recording of the financial transaction of
business in a methodical manner so that information on any point relating to their may be quickly obtained.
The method of proceeding is based upon depreciate principle, which are discussed and illustrated. The kind of information which a trader desire to have and which is readily available is summarized below:
a. the trader may discover;
b. the value up his purchases;
c. the value up his sales
d. his expenses
e. The amount of cash in the office or bank etc.
The ultimate position of the business is to make a profit, by
providing goods services or employment. Its very transaction plays it part in determining the final profit or loss for a trading period, accuracy in recording is important.
Accounting is defined as a discipline concerned with the recording, analysis and forecasting of income and wealth of business and other entities. Generally it records in money to terms the flow of economic transactions between or within economic entities.
A clear distinction between accounting and book-keeping is not easy to make because book-keeping is in fact a part of accounting.
Accounting figures are not use unless they are made to tell useful stories to the business owner.
BRIEF HISTORY OF ACCOUTNIGN IN NIGERIA
Nigeria is a further British colony. Among the influence of Britain on Nigeria is modern commercial accounting. It will be erroneous to attribute the genesis of accounting in the country to the advert of the Europeans.
For as has been said earlier, in as much as there was flourishing commerce among the various segment that make up modern Nigeria, a considerable measure of trens-share as trans Atlantic traders there must have been some form of accounting before that time. Indeed, the virgin of accounting in Nigeria must be assumed to be akin to its origin all over the world.
Commercial transaction, trade by barter with time, this rudimentary method.
Proved unsatisfactory as the sale and sophistication of commercial engagements increase with the magnetization of the tradition at economic though the introduction of various units of exchange cowries, beds, manila etc.
The method of accounting evolved further and become more refined, which method is as yet, un-researched (to the best knowledge of the author). This normal evolution of an accounting system. Whether through indigenous invention or through across the boarder importation via routine influences, suffered a violent dislocation and upheaval, like every other things as a result of the impact o colonization.
The British master established trading outposts all over Nigeria, with time, they equally introduced coinage currency.
In these trading outposts, especially the charted trading companies, modern book-keeping techniques were used. Those trading concerns grew is size card complexity and in order to maintain the necessary political and social orders for trade and development.
They began to exercise governmental control. They set up schools where they taught, among others, numerous subjects some of the products of these schools were employed as charts and book-keeping on the job.
As British laws extended to the country and as local laws were fashioned along the line of British companies operating locally found themselves subject to the same regulations of accounting practices and procedures as prevailed in British foreign accounting and audit forms soon established locally.
British trained accountants come to work in the country and set up the internal revenue department government accounting systems soon were extended through the colonial office in loaded. For quite a while all the trained accounting personnel in the country were British. But with time, local personnel were employed in the lower cedes of the civil service and the Nigeria Railways.
The first indigenous professional accountant, Mr. Akintola Williams qualified in England and Wales. By 1960 a few more Nigeria had qualified in British and some back to Nigeria and they formed the association of accountants in Nigeria (A.A.N).
The aims of the association of account in Nigeria were to institute better training arrangement for accountants in Nigeria, promote accountancy as a profession and see to the welfare of its members. The initial membership of the association was fourteen. The association receives the parliamentary charter in1965 when the Institute of Charter Accountant of Nigeria (ICAN) Ac was passed as act No.15 of 1965. The act empowers the association to regulate the practice of the profession in the country, from time to time set and modify standards for the practices of the profession and also to discipline. The act make sit an offence for anyone who is not a member of the Institute to engage in public practice of accountancy in Nigeria.
Although the Nigeria Institute has the necessary power to regulate the practice of the profession. It for a long time merely adopted these standards developed by the British accounting standards committee and the institute of chartered accounting in England and Wales.
On September 9th 1982, however, the institute established the Nigeria accounting standard based (NASB) to issue statement of accounting standard (SAI).
1.2 OBJECITVE OF THE STUDY
The arm and objective for this type or research work is to
highlight and focus attention on the roles which account play in Nigeria and how it relate to the preparation and proper control of the financial reports and statement of business and organization.
1.3 SCOPE OF STUDY
The scope of this research project is aimed at taking into
Consideration on the roles and methods by which financial and economic date are collected proceeds and summarized into report that can be used economy (Nigeria).
1.4 SIGNIFICANCE OF THE STUDY
Considering the nature of this study which is a form of
accounting ensuring, the study helps in revealing and/or creating awareness of the existence of account in all organization in Nigeria. It is equally aimed at Nigeria giving a true picture of accounting roles in Nigeria.
1.5 STATEMENT OF THE PROBLEM
As student researcher, time constraints was my greatest
obstacles couple with the problem of schedules of trying to meet up with the daily lectures and running to land fro for the assignment in course and guest for the adequate materials with which to make up the write-up.
1.6 DEFINITION OF TERMS
Every discipline has certain terms with which it can be
Similarly, accounting has its own terms which best described it and which are frequently used in this project.
i. TRANSACTION: Any dealing between two or more persons involving exchange of goods or services for a consideration, usually in money.
ii. ASETS: These are rights which have value to its owners which represents expected future economics benefits or rights, have been acquired as the right of paid or current transaction assets companies of fixed and current.
iii. FIXED ASSETS: These are rights which are tangible in nature and can last with a persons or business entity for a very long time.
These are usually acquired for retention in the business and not for convention into cash. They include motor vehicle etc.
iv. CURRENT ASSET: These are assets which are circulating or floating within the business at the current period usually at current financial period. They can be easily turned to cash at a reasonable short time. For example, cash at hand, bills receivable and prepayments.
v. STOCK: These are goods bought and meant or resale at a particular period. These items are his stock of goods. It may be opening and closing stocks. The opening stock concern the goods with which a business was started. The stock of goods which remained on sale is the business at the end of the period, for which value can only be ascertained by courting is know as the closing stock.
vi. LIABILITIES: These are amount which a business owe to its owners or others. They consist of faced or long term liabilities and current or short term liability.
vii. FIXED OR LONG TERM LIABILITIES: They include all money which a business owners to its owners or others which need not be met with a year. They include capital in the cash of sale trader and debentures, issued share capital in the case of a limited company.
TERMS AND CONDITIONS
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4. Direct citing ( if referenced properly)
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