ABSTRACT
The important of
accounting in business world can not be over emphasized. They have becomes the
foundation in which the whole fabric of modern commerce rest.
This project
therefore, studies the important of accounting as an inevitable tools in profit
organization with particular reference to Guinness Nigeria plc. I discovered
that Guinness Nigerian plc is a well organized company it’s relevant to the
industry from defining accounting and stating its relevance to the industry
today. The study discussed the fact that even large organization prepared and
present very high standards of accounting record of her business.
Data analysis
was by means of sample percentages and chi- square method. Result of the
analysis upheld the entire hypothesis put forward by the research.
TABLE
OF CONTENTS
CHAPTER
ONE
Introduction
1.1
Background of study
1.2
Statement of problem
1.3
Purpose of study
1.4
Research question
1.5
Research hypothesis
1.6
Definition of terms
1.7
Significance of the problem
CHAPTER TWO
LITERATURE
REVIEW
2.1 Historical background of Guinness Nig Plc.
2.2 Accounting Define
2.3 Objectives of Business Management
2.4 The Theory of profit Maximization
2.5 Relationship between Accounting and profit
Maximization
2.6 Limitation of Accounting
2.7 Accounting Profession
2.8 Double Entry system
2.9 Summary
Reference
CHAPTER
THREE
RESEARCH
METHODOLOGY
3.1
Introduction
3.2
Statement of research questions &
hypothesis
3.3
Research design
3.4
Population of study
3.5
Sample
and sampling technique
3.6
Data collection instrument
3.7
Validity of the instrument
3.8
Reliability of the instruments
3.9
Limitation of methodology.
CHAPTER ONE
Introduction
Background of study
The accounting
system can be regarded as a universal phenomenon needs not only by individual
but also by organization. For these reason bookkeeping and accounting records
need to be properly scrutinized and analyzed. It can be truly said that the accounting
system has become the foundation on which the whole fabric of modern commerce
rest. Business transaction can only be carried out in the crudest forms and
development for the modern credit system.
With it obvious
advantages of convenience would have been totally impossible.
Accounting as a
record keeping process has worked out gradually over many countries to save the
changing and economics needs of society. As early as 300 B.C. clay table were
used in Babylonian Empire to record various fact. Many of these records contain
list of events as they occurred or list of good belonging to an individual or
temple. Similar records have also been discovered describing business
activities in ancients Greece,
Egypt
and Rome. While
this early record contained most inventories of goods and debt, later record
began a concern for compiling profit and loss for different ventures. Some
addition advances in record keeping were made by church officials and
government during the middle ages. Although these early record are interesting.
They add little insight to the development of modern day accounting, which is
based on the double entry method.
Modern day
accounting has its origin in the double entry keeping method by Italian
merchant during 12th and 13th century. Probably the most condition
giving rise to this development was the rise in trade between medieval Italian
cities and the east. The first complete description of the double entry system included in a book called Suma de
Arithmetica, Geometria, proportion et protionalita (1494) by Franciscan monk
named Luca paciolo two years after
Columbia discover America.
Although, the
Suma was essentially a treatise on mathematics, it contained records that have
developed gradually over the preceding 2 or 3 countries. Paciolo’s description
of the double process was included in other books and was used widely
throughout Europe during the 15th, 16th and 17th
centuries. The double entry process becomes a basis for modern accounting
procedures.
The industrial
revolution in Europe during the 18th
and 19th century produced many significant social and economic
changes including a change from the hand craft production system to the factory
system.
The factory
system was based on the use of machinery and equipment to produce many identical
products at low cost.
During the 19th
and 20th century, corporations have become a dormant factor in
financing, producing and distributing goods and services. These corporations
are often large complex organization whose owners demand accounting system that
can provide relevant and reliable information for use in evaluating the
efficient of operations.
Government
organization and income tax legislation have resulted in increased demand on
accounting system. In both their record keeping communicating functions, The
double entry system developed by the Italian merchants is essentially the same
system used today to satisfy the increased demand for accounting information
and the change of handicraft production system to factory system, helps in
producing many identical product at low cost with the use of machineries which
helps in Maximization profit.
1.2. STATEMENT OF PROBLEM
a)
Inefficient system of accounting, which
leads an organization into several financial difficulties.
b)
Most organization fails to install a
sound accounting system which makes transactions not properly recorded, thereby
leading to deficiency and lack of progress in such an organization.
c)
Organization find it difficult to ascertain whether they are making profit or loss since as they
produce they sell and use up the money without bothering to keep records.
d)
Inability of the organization to
forecast, make decision about the future financial position and potential
outcomes of various alternatives that are considered.
e)
Failure to determine the economic effect
of past decisions on the organization which is actually communicated by means
of periodic financial statement.
f)
Inability to keep track of a wide range
of items to meet the financial system requirement and safeguarding the assets
of the business as part of responsibilities of the company.
g)
Laxity or slackness on the record
keeping process of the organization which definitely leads to fraud.
1.3
PURPOSE
OF STUDY
a)
To ensure that there is an efficient
system of accounting in place in the organization so as not to get into serious
financial difficulties.
b)
To ensure that sound accounting system is
installed in the organization to ensure proper recording of transactions
thereby leading to visible progress in the organization.
c)
To ensure that the financial position of the
organization can be determined at any point in time.
d)
To ensure management determine the economic
effects of past decision on the organization.
e)
To ensure that there is a reliable
record keeping process, so as to eradicate fraud completely in the
organization.
f)
To ensure the organization keep
track of its wide range of items in
other to meet the financial system requirement and safe guard the assets of the
organization as parts of the responsibilities of the management of the company.
g)
To enable the management forecast and
make decision about the future financial position and potential outcome of
various alternatives that are considered.
1.4.
RESEARCH QUESTIONS
i)
Is there any relationship between
accounting record and profit Maximization?
ii)
Does the continuous use of accounting
system tends to increase the proper recoding of transactions?
iii)
Does a constant change in our economy
increase the use of accounting system?
iv)
Does the reliability of internal control
lesson/ reduce the risk and facilitates the detection of fraud?
v)
Does inadequate use of accounting system
limit our ability to asses our financial position.
1.5.
STATEMENT
OF HYPOTHESIS
i)
That the continues use of accounting
records tends to increase the proper recording of transaction.
ii)
That inadequate use of accounting system
limits our ability to ascertain our financial position.
iii)
That the more reliable the system of internal
control the less the risk and the more it facilitates detection of errors and
frauds.
iv)
That constant changes in our economy
facilitates increase in the use of accounting system.
DEFINITION OF TERMS
i)
Accounting Bases:- These are the
method for applying fundamental
accounting concepts to financial
transactions which are Accrual base, cash base etc.
ii)
Revenue:- These are income benefit or
resources earned or generated by the organization from Itself. In other word,
they are derived from business or operational activities of the organization.
iii)
Expenses: Is the amount incurred or due for
the benefit derived in commercial transactions; it is also any amount paid out
as a result of goods, services or assets received, or amount exchanged for benefit
received e.g. rents, electricity and purchase of goods for resale etc.
iv)
Bad dept:- These are debt that are not recoverable from
the debtors. This is as a result of inability to pay debt or disappearance of
the debtors.
v)
Long term liabilities: - These are
indebtedness of an organization that will take more than one year before being
repaid. E.g. Debenture, Long-term loan etc.
vi)
Tangible Assets:- They are assets that have
physical identity and also have futuristic benefit i.e. they are assets that
can be seen, felt and touched e.g. Building, plants etc.
vii)
Waste assets:- These are the long lived
resources of a business which can be exhausted or used up without replacement
e.g. queries, oil well etc.
1.8.
SIGNIFICANCE OF THE RESEARCH PROBLEM
a)
Accounting information helps the
decision makers to make good decision in the business management.
b)
It helps the business management to have a
permanent records for all transaction made.
c)
It helps organization to determine the
profitability of a business concern.
d)
Accounting information helps in preventing the
business management from fraudulent practice.
e)
It helps business management to know the
economic important with any past decision.
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