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Computer An Important System In The Processing Of Accounting
Information
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TABLE OF CONTENTS
Title page i
The approval page ii
Acknowledgement iii
Abstract v
Dedication vii
Table of content viii
CHAPTER ONE
1.0 Introduction 1
1.1 Background of study 1
1. !tatement of the problem "
1.# $esearch hypothesis % &uestion '
1.( !ignificance of the study 10
1.) !cope and limitation 11
1." Definition of terms 1
$eference 1)
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*+A,T-$ T/
.0 $eview of related literature 1"
.1 The computer 1"
. /rganiation of accounting inf. !ystem 1
.# Impact% relevance of computer in
processing of accounting information. 1
.( ,lanning for computeried accounting system "
.) *ost and benefit of computer to an organiation "
." Business without computer ""
$eference 2
CHAPTER THREE
#.0 $esearch design and methodology 2#
#.1 $esearch design 2#
#. ,opulation 2#
#.# !ources of data 2(
#.( Data collection 2"
#.) Data analysis procedure 2"
#
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#." Description of &uestionnaire 22
CHAPTER FOR
(.0 Data presentation 3 analysis 2
(.1 Data analysis 2
(. Testing of +ypothesis
CHAPTER FI!E
).0 4indings5 conclusion 3 recommendation 11)
).1 !ummary of findings 11)
). *onclusion 112
).# $ecommendation 11'
Bibliography 11
Appendi6 i 11
Appendi6 ii 1'
CHAPTER ONE
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INTRO"CTION
#$# BAC%&RON" OF ST"'
The basis for financial planning and analysis is the financial information
financial information is needed to predict5 compare and evaluate the firms
earnings ability it is also re&uired to aid in economic decision making
investment 3 financial decision making. The financial information of an
enterprise is contained in the financial statement or accounting report.
Accounting is the guide post for management every enterprise
should know the activities carried on by it and the financial implication of
its operations. The financial score of an enterprise is kept by the
accounting system accounting information unit in business conte6t is a unit
in an organiation that processes transaction to provide score keeping. It
points out the problem faced or likely to be faced by the enterprise. It also
brings to the notice of the firm the opportunities that are likely to arise. It
indicates possible action5 when needed. Accounting is the process of
identifying5 measuring and communicating economic information to permit
7udgment and decision by users of the information.
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Accounting information could be classified under two heading or three
headings. 8nder two headings. It is classified as.
1. 4inancial accounting which provides information about profit
and loss and financial position of the organiation at a given
period and management accounting which provides
management information needed for planning and control in
an organiation.
8nder three heading. It is classified as9
i. $outine : Internal report9 That is day to day reports to management
for planning and control of the organiation function for instance
performance report financial reports and accounts.
ii. ;on
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of computer has been acclaimed as the most important technological
development of the twentieth centaury
Davis =1'1 defined computer as a machine that is capable of
manipulating or processing data under its own control without the need for
being. ?I computer has an electronic device that has the ability to accept
data5 internally score and automatically e6ecute a program of instruction
performed mathematical logical and report the result.
*omputer is the latest crae in ;igeria today and it will continue to
be relevant as the country develops. It has gained acceptance in all sectors
of the economy.
The computer system as an important in the processing of
accounting information cannot be over emphasied . the complicated nature
of decision which must be taken in business organiations and government
institution most especially in the area of financial and accounting operation
often makes the use of computers mandatory if efficiency and effectiveness
is to be maintained. As pointed out by *hukwu D.*.
The intelligent use of computer by the industrialied nations are led
to efficient and effective private and public sectors which produce high
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&uality goods at low cost and are seller able to whether the violent storm of
keen foreign competition.
Developing economics like ;igeria en7oy low cost goods and
services provided by develop economics and at the same time tries to
protect their local industries from stiff foreign competition goods and
services provided by these developing communities are inferior and dearer
compared to that of developed countries.
!peed and accuracy of services are the watch word in most
computeried industries mainly in fully industrialied. This makes it
possible for them to realied their ultimate ob7ectives =i.e. wealth
ma6imiation>
Through the use of computers economic pictures of the organiation
could be enhanced by cost displacement. /perational and revenue
improved by the introduction of computers in all sectors of the economy.
The tread towards representing information in manual dates to +olleith
=1'0>. In recent time there has been a move towards doing away with
manual record keeping and transmitting the information electronically
leading to what is called ? ,aperless optice@ +owever5 it normally turns out
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that what goes automated is not the function as it has been performed to do
what would normally be uneconomical and in some cases impracticable.
Instead one looks for a character of function5 typically consisting of
transition of current work of a number of people which can be redesigned
so that he computer can do something e&uivalent although usually not
identical. /nce such a duster of work has been identified and the computer
application designed one must also redesign the 7obs of the people with
whom the computer application will have to face.
The work of some workers will be substantially affected by the
introduction of computers it does not mean5 for instance that an accountant
cases to be an accounted rather5 the computer greatly aids his diverse
operation as an accountant.
In fact5 computer is gradually taking over all sphere of human
endeavors especially the processing of accounting and cam perform any
function provided information fed into it is accurate5 complete and factual
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#$( STATE)ENT OF THE PROBLE)$
In our world today computers are used in large and small business
education5 science and engineering5 health care5 sports5 in the home
entertainment and leisure5 artificial intelligence e6pert system5 government
and military. Due to the vest use of computer in almost every sector of the
economy5 the need for controllers or information generated by the
computer becomes unavoidable.
/ne can rightly say that &uick customer services and fast accounting
operation is far from being actualied in some of our organiations. uick
services and fast operations means move work being done in shorter time.
A firm with these &ualities will have unrivaled customers attraction.
usa =1')> noted that information processing probably the most
significant industry in the world economy today and in the foreseeable
future. It has e6panded and continues to e6pand at a rapid rate. This
e6pansion is in part related to the increase in cost effectiveness of computer
hardware. *ost effectiveness has increase by a factor far bout 1000 every
decade. As long as this rate charge continues5 the rangers of tasks that can
be handled most economically by computing is likely to grow rapidly.
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!ince software is the ma7or part of most computer systems5 the field of
software engineering can e6pect similar rapid growth
At this 7unction we look at what is actually the relevant of computer
in the processing of accounting information.
According to cral *.;. the computer can be used in a wide variety
of ways and often it is only the potential user who can appreciate and
suggest thes uses. It is impossible that the user will e6ploit the potentials of
the computer of he depends ion e6perts.
The computer soon absorbs most of the calculation and data
processing within an organiation. These have traditionally been the
accountants responsibility and it is likely that certain aspect such as
accuracy and control will remain his responsibility
It is known that overtime duties are common in accounting system as
the working hours do not seem to be sufficient to finish a given days 7ob.
This of course means e6tra costs on the firm for overtime allowances and
utility bills.
!ome areas of accounting are hardly delved into by accountants
because of high demands in time and human brain. 8ntold time and money
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is spend in rectification of mistakes made by workers in the course of
manual processing of accounting information in particular and to business
organiation in general.
The researcher would also like to know how a business can apply
computer5 as well as planning for a computeried accounting system to
finally to find out why some organiation prefer using manual to using
computer in business.
#$* RESEARCH H'POTHESIS + ,ESTION$
RESEARCH H'POTHESIS
To come out with a reliable result the following hypothesis will be
formulated and tested statistically.
I. +o9 *omputeriation of accounting information system does not
hinder the effectiveness of the accountant.
+19 *omputeriation of accounting information system does not prevent
increased speed of operation5 processing and accuracy of output.
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II. +o9 *omputeriation of accounting information system does not
prevent increase speed of operation5 processing and accuracy of
output.
+19 *omputeriation of accounting system prevents increase
speed of operation5 processing and accuracy of output.
III +o9 *omputeriation of accounting information system not hamper
the reliability and better storage of accounting information.
+19 *omputeriation of accounting information system hampers
the reliability and better storage of accounting information.
IC. +o9 The use of computer does not militate against accounting
profession.
+19 The use of computer militate against accounting profession.
C. +o9 *omputeriation does not effect the employment of accountant
to a large e6tent.
+19 *omputeriation affects the employment of accountant to a large
e6tent.
RESEARCH ,ESTION
1. Is computeriation an aid5 a burden or a hindrance to a account
1#
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. Are those benefits derived from computeriation of accounting
information
#. Is it possible to introduce computer is an e6isting company and how
that take place
(. Does computers have effect on the performance of the accountant
The researchers posed those &uestion to enable her find out if
computers system is important system in the processing of
accounting information.
#$- SI&NIFICANCE OF THE ST"'
It is important that computeriation would go a long way to enhance
the overall effectiveness and efficiency of the accountants. In fact5 it is very
necessary to computerie accounting information for sound management
decisions and implementation.
The importance of this study is to aid managers by way of drawing
their attention to attainable ways of computer application in accounting
information system. This will also help managers to enlighten the
1(
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accountant on the benefits really derivable from a computer to the business
vis
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i. +igh cost of research materials coursed by the irrelevant
economic down
c. I)PORTANT S'STE)
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This is a system that is important. But system itself is described as
the detailed plan or management for the inter
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i. ELECTRONIC
Things made up of chips
7. INSTACLATION
/f a new computer system represents a ma7or changes in the work
routine of user. *areful consideration should be given to system conversion
to create a minimie of disruption to business operations =i.e. an apparatus
in a fi6ed state ready for use.>
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REFERENCES
1. Adekunle5 A =may (5 1> special report on computer services. The
crae in town ;ews atch Col. ) ;o. 1'
. era5 T.;. =12"> *omputer and accounting -EB! and +IF;
;IE-G and son ETD.
#. *hukwu D.*. =12"> !pecialied Application to computers year
lecture note -sut ,. #"
(. ,andey I.. =1'1> 4inancial management India Cikas
,ublishing +ome ,CT+ ETD
). /6ford Advance Eearners Dictionary =11>
". A concise guide to computer Application package9 -merade *omputer
training *enter.
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