ACCOUNTING INFORMATION, CONCEPTS AND APPLICATION FOR PLANNING AND DECISION MAKING
- Project Research
- 1-5 Chapters
- Abstract : Available
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- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
Abstract
Accounting is a body of knowledge which does not have a gingle definition, vicarious and several actions have come up with different definitions which reflects the period in the evolutionary stages of accounting thoughts during which definitions were made.Thirty questionnaires were distributed to the employee who made up the sample size got much co-operation from the respondents but it must be stressed that some staffs were either too busy due to the volume of work in their care or unwilling to fill the questionnaire due to personal reasons which is or are hidden from me that resulted in loosing 6 questionnaires but of the 30
It was gathered in the process of the research that the company’s liquidity ratios over the last few years (i.e 2003, 2004) in order of current ratio 0.38 and 0.81 respectively; absolute liquidity ration, 0.40 and 0.35 respectively, quick ratio, 0.61 and 0.60 respectively. However, there is no hard and fast rule as to what constitute an ideal ratio as companies circumstances vary, the company’s liquidity performance does not call for any serious action as it conform with what is obtainable in similar companies.
Other financial ratios computed for the company are satisfactory and in line with what is obtainable in the industry the company is operating. However, of note is the result of the activity ratios that measures how effectively the firm employs the resources at its command. The average collection period had been a little lengthening which is stronger evidence that steps should be taken to expedite the collection of accounts receivable.
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