The accounting information is the bases for financial planning analysis and decision making. They are needed to produce, compare and evaluate the forms of earning ability. It is also required to aid on economic decision making. the accounting information of an enterprises, firms or companies are contained in the financial statement of accounting reports and this comprises of firms balance sheet, profit and loss accounts or income statement of sources and application of fund, statement of value added, notes to the accounts and statement of accounting policy etc. The information contained in each of the statement and the management in decision making in diverse ways for example; the statement of value added measures, the wealth created by a business entity over a period of time and how it has been shared amongst the interest group. The profit and loss account measure the share profit which has accrued to the shareholders during a period while the balance sheet indicates the financial condition on the statement of affairs of a business at a business at a particular moment of time or accounting period.


Title page                                                i

Approval page                                         ii

Dedication                                               iii

Acknowledgment                                     iv

Abstract                                                  v

Table of content                                      vi

Chapter one

  1. Introduction                              1
    1. Background of the study             2
    2. Statement of problem                 3
    3. Purpose of study                         5
    4. Research questions                     6
    5. Scope of study                                  7
    6. Significance of study                                 7
    7. Limitation of study                                    8
    8. Operational definition of terms                   9

Chapter two

  • Review of related literature                      12
    • Introduction                                             12
    • Nature of accounting information               12
    • Source of accounting information               18
    • Importance of accounting information        21
    • Accounting information and management   23
    • Decision making process                           27
    • User of accounting information in firms       29
    • Problems of the use of accounting information

in companies                                            39


3.0 Research design and methodology                    42

 3.1 Introduction                                                   42

3.2  Research design                                             42

3.3 Sources/methods of data collection                    43

3.4 Population and sample size                               45

3.5 Sample technique                                            46

3.6 Validity and reliability of measuring instrument  47

3.7 Method of data analysis                                   49


4.0 Presentation and analysis of data                      51

4.1  Introduction                                                   51

4.2  Presentation of data                                       52

4.3  Analysis of data                                              52

4.4  Interpretation of Result                            78


  • Summary of findings, conclusion and

Recommendations                                          80

5.1  Introduction                                            80

5.2  Summary of findings                                80

5.3  Conclusion                                              82

5.4  Recommendations                                   83

Bibliography                                            85

Appendix                                                       87



Management is frequently faced with the problems of making alternative decisions faced with fact that resources are relatively scarce and limited compared to human wants. management does not only seek to ascertain cost at various stages in the process of providing a product or services, but also to make proper and accurate decisions at all levels on the modern organization. This process is facilitated by utilization of adequate and accurate accounting information policies.

 Chris M. Madu [1999] without doubt decision making is one of the highest forms of human and hence management activity. The development of a business and the activity of its potentials very much depend on the existence of entrepreneurs with the present skills, capital and professional advice. These include accurate accounting information provided by accountants and their planning and other decision process. Despite the provision and utilization of accounting information, managers found it difficult to plan accurately. Consequently, results have on most cases been away from decision barget. This can be attributed to inadequate and inappropriate use of information. This study will examine the use of accounting information in the form. it will delve into the constraint affecting the use of accounting information by mangers in their decision making process.

Also this study will give a related literature that will discuss the nature and sources of accounting information, its importance and the users of this information.


The background of this study gives us the context of the problem being investigated. The researcher traces the circumstances that triggered off the study. A background to the study  is necessary in any research undertaking because it relates to us where we are coming from and serves as a link between the past and the present as regards the problems being investigated.


The major purpose of the use of accounting information is the minimization of risk and uncertainties that is likely to bring about failure on business.

Some likely problem that may be encountered or the use of accounting information includes:

The ability of mangers to interpret accurate accounting data made available to them may less to a deviation from the form’s normal course of goal attainment.

The level off qualification of the accounting staff if not adequate will pose a serious problem on the quality of accounting information supplies as it may likely be inadequate.

Lack of job experience may also affect the quality of information passed into management to ensure it work affectively.

The poor and improper utilization accounting information,  there may be difficult in acquiring relevant accounting information needed by the management of a form for decision making needs on the other hand, if this information is gotten, it may not be properly utilized for the purpose for which it was acquired.

The lack of timely relevant information of the accounting and other personnel in the department.

The new and improved technology on large scale, forms without the complimentary expertise in its operations are likely to reduce the usefulness of the accounting information supplied.

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