computer an important system in the processing of accounting information

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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

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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

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accountant on the benefits really derivable from a computer to the business

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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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computer an important system in the processing of accounting information

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