0704-883-0675     |      dataprojectng@gmail.com

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

  • Project Research
  • 1-5 Chapters
  • Abstract : Available
  • Table of Content: Available
  • Reference Style: APA
  • Recommended for : Student Researchers
  • NGN 3000

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 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.





Related Project Materials

TELEVISION AS A POSITIVE CONTRIBUTOR TO THE SOCIALIZATION OF CHILDREN

ABSTRACT

In times past, a great deal of research has been carried out at various levels in the impact o...

Read more
THE CAPITAL MARKET AND ITS IMPACT ON THE NIGERIAN ECONOMY, WITH SPECIAL EMPHASIS ON THE NIGERIAN STOCK EXCHANGE

BACKGROUND OF THE STUD...

Read more
AN ANALYSIS OF THE EFFICACY OF FISCAL LAWS RELATING TO PETROLEUM OPERATIONS IN NIGERIA

ABSTRACT

Petroleum has become the number one resource in the world because of its universality. All other resources are demanded in varyi...

Read more
THE EFFECT OF UNQUALIFIED TEACHERS ON ACADEMIC PERFORMANCE OF STUDENTS

ABSTRACT

This study focused on the effect of unqualified teachers on academic performa...

Read more
TAXATION AS A TOOL FOR ECONOMIC DEVELOPMENT OF NIGERIA

Background of the study

Nigeria as a nation has the vision of becoming one among the world’s 20 largest economies...

Read more
THE INFLUENCE OF CAPITAL STRUCTURE ON FIRM VALUE

Abstract: THE INFLUENCE OF CAPITAL STRUCTURE ON FIRM VALUE

This study examines the influence of capital structure on the value of firms....

Read more
ADDRESSING MENTAL HEALTH ISSUES AMONG VOCATIONAL STUDENTS

Abstract: This research addresses mental health issues among vocational students in Nigeria...

Read more
ASSESSMENT OF COMPUTER BASED CENSUS MANAGEMENT SYSTEM: A CASESTUDY OF NATIONAL POPULATION COMMISSION (NPC)

Introduction

From time immemorial, the census has been a trustworthy activity on which the government relies for decisio...

Read more
THE EFFECT OF COST ALLOCATION FOR SHARED SERVICES AND OVERHEADS

Abstract: THE EFFECT OF COST ALLOCATION FOR SHARED SERVICES AND OVERHEADS

This research explores the effect of cost allocation methods fo...

Read more
PERFORMANCE MANAGEMENT, A NEW STRATEGY FOR IMPROVING PUBLIC SECTORS’ EFFECTIVENESS  

ABSTRACT

Performance Management processes have become prominent in recent years as means of providing a more integrated and continuous ap...

Read more
Share this page with your friends




whatsapp