Impact Of Financial Accounting Report On The Management Of A Business Organization

ABSTRACT

Financial accounting covers those activities related to the preparation of certain reports which are known as financial statement. These statements reports the financial status of a firm at a particular time the firms activities and resulting profit or losses during the most recent period and the flow of resources occurring within the firm during the same period. This statement made by AKUWUDIKE and UGWU (2000), gives us an idea on the meaning of financial accounting. However the question arises, "what are the efforts of these financial account reports in the management of business"? The answer poses a problem which the paper will seek to solve. Not all business persons understand the impact of financial accounting information on the management of their business, some manages business intuitively. Others, like traffic defaulters who disobey road signs, disobey the warnings communicated by financial accounting information and end up in a "Business Accident"