ABSTRACT

This study aims at assessing the effectiveness of accountinginformation system in  decision   making in small and medium scaleenterprises.  Under the followingspecific objectives:  to assesstherelevance of accounting information in the survival  of small and medium scale enterprises; the extentto which managers ofsmall scaleenterprises rely on accounting information in takingdecisions that affect theirenterprises;relationship between failureof small and mediumscaleenterprises  in  Nigeria and  their compliance with  accounting standards  in financialreporting;and   finally to ascertain problemsthatpose threatto the survival  of  small and  medium  scale businesses.        Structured  research questionnaire  was  designedand administered on 80 randomly selectedrespondents from twentysmall and mediumscale enterprises in Owerri, Imo State, Nigeria,  out of which 78 respondents who responded tothe survey wereused to carry out the study. The methods of data analysisincluded tables, simple percentage andchi-square statistical technique. The analytical findings reveal that asubstantial proportion of the respondents are of the view that thesurvival  of small  scale  enterprises in  Nigeria depends  on  the  reliance of accounting  information.  Also  revealed  is that a significant fraction of  therespondents agreed thatfailure of small and medium scale business is as a resultof non-compliance withaccounting standardin financial reporting. This· implies that there issignificant relationship between the survival of small scalebusinessenterprises in  Nigeria and the  reliance of accounting information.Imperatively, it is recommended that entrepreneurs and managers of small andmedium scale businesses should try as much as possible  to understand theprinciples of book-keepingand accounting system in order to provide the basis for sound decision making,utilization of the services of professional accountants who perform expert anduseful accounting services to small scale firms for optimal performance.

TABLE OF CONTENT

1.1. Background of the Study     

1.2 Statement of Problems

1.3    Objectives   of the  Study                                                                          5

1.4 .       ResearchQuestions                                                                         6

1.5      ResearchHypotheses                                                                     7

1.6   Significance ofthe Study                                                                  8

1.7  ·           Limitations of the Study                                                                   9

CHAPTER TWO

LITERATURE    REVIEW

2.1 Introduction to Accounting  Information                                              10

2.2   AccountinqSystem                                                                            13

2.3   ManagementInformation System and Control                                14

2.4 Relevance of Accounting Information in

Maximization of Profit                                                                          15

2.5 Effects of Government Regulation                                                     16

2.6 Advantages  andImplications of Accounting Information System                                                                             17

2.7  Accounting  Information Systems (AIS)                                             18

2.7.1  Components ofAccounting  Information System.                          .    19

 2.8  Accounting Activity                                                                               19

2.9  Budgeting andBudgetary Control                                                     21

2.9.1  ProfitMaximization                                                                           22

2.9.2 General Uses of Accounting  Information                                        23

2.9.3 Source of Accounting Information System                                     26

2.9.6   The Role ofAccounting  Information in

Small and Medium Scale Enterprises                                             32

CHAPTER  THREE

RESEARCH  METHODOLOGY

-                                                                         vii

3.1    Research Design

3.2    Area of theStudy                                                                             35

3.3'  Population   of study                                                                          36

\       I                                             .                                 .

3.5       Sample andSampling Techniques                                       36

3.6   Sources andMethods of Data Collection                                ·~·7-1

CHAPTER  FOUR

DATA PRESENTATION, ANALYSIS  AND HYPOTHESES  Tes· rlNG

4.1   Presentation ofData                                                                           41

4.2  Demoqraphic  Profile of Respondents                                                42

4.2 Presenting and Analyzing of Research Questions                            44

4.3  HypothesesTesting                                                                            50

4.3.1    HypothesisTesting 

4.3.2  HypothesisTesting 

CHAPTER   FIVE

SUMMARY,  CONCLUSION    AND  RECOMMENDATION

5.1       Summary                                                                                                   54

5.2    Conclusion                                                                                                  57

5.3    Recommendation                                                                                      57

References

Appendix