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Tags: THE DEVELOPMENTAL ROLES OF FINANCIAL INSTITUTION IN ECONOMIC DEVELOPMENT IN ABIA STATE (A STUDY OF MINISTRY OF ECONOMIC DEVELOPMENT UMUAHIA)

7 years ago 0 Comments Short URL

THE IMPACT OF CAPITAL MARKET ON ECONOMIC DEVELOPMENT OF AKWA IBOM STATE (A STUDY OF NIGERIAN STOCK EXCHANGE, UYO)

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

THE IMPACT OF CAPITAL MARKET ON ECONOMIC DEVELOPMENT OF AKWA IBOM STATE (A STUDY OF NIGERIAN STOCK EXCHANGE, UYO)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The capital market is a highly specialized and organized financial market and indeed essential agent of economic growth because of its ability to facilitate and mobilize saving and investment. To a great extent, the positive relationship between capital accumulation real economic growths has long affirmed in economic theories (Anyanwu, 1993).

Success in capital accumulation and mobilization for development varies among nations, but it is largely dependent on domestic savings and inflows of foreign capital. Therefore, to arrest the menace of the current economic downturn, effort must be geared towards effective resources mobilization. It is in realization of this that consideration is given to measure for the development of capital market as an institution for the mobilization of finance from the surplus sectors to the deficit sectors.

The development of capital market in Nigeria, as in other developing countries has been induced by the government. Though prior to the establishment of stock market in Nigeria, there existed some less formal market arrangements for the operation of capital market. It was not prominent until the visit of Mr. J. B. Lobynesion in 1959, on the invitation of the Federal government, to advice on the role the Central Bank could play in the development of local money and capital market. As a follow-up to this, the government commissioned and a set up the Barback Committee to study and make recommendations on the ways and means of establishing a stock market in Nigeria as a formal capital market. Acting on the recommendation of the committee, the Lagos Stock Exchange (as it was called then) was set-up in March 1960, and in September 1961, it was incorporated under Section 2 cap 37, through the collaborative effort of Central Bank of Nigeria, the Business Community and Industrial Development Bank (Alile&Anao, 1990). With the establishment of the Central Bank of Nigeria in 1959 and the coming into existence of the Lagos Stock Exchange in 1961 and Subsequently, the Nigeria Stock Exchange by an Act in 1979, a sound foundation was laid for the operation of the Nigerian Capital Market for trading in securities of long term nature needed for the financing of the industrial sector and the economy at large. After the incorporation of the Lagos Stock Exchange, it was granted further protection under the law and its activities was placed under some sort of control by the government, hence the passing of the Lagos Stock Exchange Act. However, the Lagos Stock Exchange was only operational in Lagos. By the mid 70’s, the need for an efficient financial system for the whole nation was emphasized, and a review by the government of the operations of the Lagos Stock Exchange market was advocated. The review was carried out to take care of the low capital formation, the huge amount of currency in circulation which was held outside the banking system, the unsatisfactory demarcation between the operation of Commercial Banks and the emerging class of the Merchant Banks, and the extremely shallow depth of the capital.

In response to the problems mentioned above, the government accepted the principle of decentralization but opted for a National Stock Exchange, which will have branches in different parts of the country. On December 2nd 1977, the memorandum and article of association creating the Lagos Stock Exchange was transformed into the Nigerian Stock Exchange, with branches in Lagos, Kaduna, Port-Harcourt, Yola and now in Federal Capital Territory (FCT) Abuja some other cities. The history of Nigeria Capital Market could be traced to 1946 when the British colonial administration floated a N600, 000 local loan stock bearing interest at 3¼% for the financing of developmental projects under the Ten-Years Plan Local Ordinance. The loan stock, which had a maturity of 10-15 years, was oversubscribed by more than N1 million, yet local participation of the issued was terribly poor. Certainly, potential fund abound in Nigeria, but the overriding consideration in this project is to examine the impact of the capital market in harnessing and mobilizing these resources (fund) to generate economic growth in the country and consequently economic development.

1.2 STATEMENT OF THE PROBLEM

There is abundant evidence that most Nigerian businesses lack long-term capital. The business sector has depended mainly on short-term financing such as overdrafts to finance even long-term capital. Based on the maturity matching concept, such financing is risky. All such firms need to raise an appropriate mix of short- and long-term capital (Demirguc-Kunt& Levine 1996).

Most recent literatures on the Nigeria capital market have recognized the tremendous performance the market has recorded in recent times. However, the vital role of the capital market in economic growth and development has not been empirically investigated thereby creating a research gap in this area. This study is undertaken to examine the contribution of the capital market in the Nigerian economic growth and development. Aside the social and institutional factors inhibiting the process of economic development in Nigeria, the bottleneck created by the dearth of finance to the economy constitutes a major setback to its development. As a result, it is necessary to evaluate the Nigerian capital market.

1.3 OBJECTIVES OF THE STUDY

The broad objective of this study examined the activities and performance of Nigerian capital market. The specific objectives of the study are as follows:

To examine the operations of the Nigerian capital market.

To evaluate the performance of the capital market in relation to the economic growth in Nigeria.

To examine the rate at which new stocks are issued on the capital market.

To identify the impediments of capital market in economic development of AkwaIbom State

To make recommendations as to how the operations of the market could be improve to boost economic growth and development of Nigeria.

1.4 SIGNIFICANCE OF THE STUDY

The study explored the impact or effectiveness of capital market instruments on Nigerian economic growth. Though the scope of the study was limited to the capital market, it is hoped that the exploration of this market will provide a broad view of the operations of the capital market. It will contribute to existing literature on the subject matter by investigating empirically the role, which the capital market plays in the economic growth and development of the country. The main importance of this study is that it will provide policy recommendations to policy-makers on ways to improve operations and activities of the capital market.

1.5 RESEARCH QUESTIONS

This research was guided by the following research questions:

How is the operation of Nigeria capital market?

What is the performance of the capital market in relation to economic development of Akwa Ibom state?

iii. What are the activities of the capital market in Uyo branch?

What are the prospects of capital market in economic development of Nigeria?

What are the impediments of capital market on economic development of Akwa Ibom State?

1.6 RESEARCH HYPOTHESIS

The following hypothesis was formulated to guide this study:

HYPOTHESIS 1

H0: That the capital market operations have no impact on Nigerian economic development.

H1: That the capital market operations have impact on Nigerian economic development.

HYPOTHESIS 2

H0: There is no significant relationship between performance of the capital market and economic development of AkwaIbom State.

H1: There is a significant relationship between performance of the capital market and economic development of AkwaIbom State.

HYPOTHESIS 3

H0: There are no impediments of capital market on economic development of Akwa Ibom State.

H1: There are impediments of capital market on economic development of Akwa Ibom State.

1.7 SCOPE OF THE STUDY

The study is limited to Nigerian Stock Exchange (NSE), Uyo branch and upon the research topic, which is centered on the impact of capital market on economic development of Akwa Ibom State.

1.8 LIMITATION OF THE STUDY

The limitation to this study on the following ways:

TIME FACTOR: The period within which the study is conducted is for thorough research study, hence gathering adequate information becomes difficult.

FINANCE: This is one of the limitations to the scope of this study. The researcher is facing financial constraint to meet all the educational requirements including this research work. This caused the researcher to restrict her research work to one company for possible completion.

1.9 DEFINITION OF TERMS

FINANCIAL MARKET:

This is a market in which people and entities can trade on financial securities, commodities and other financial facilities. It provides a mechanism for the efficient mobilization of funds from the surplus economic units (Supplier f funds) to the deficit economic units (Mbat2001.)

ISSUE: This is securities of a company or government sold by way of a public offering or private placement at a given point of time(Pat &James, 2010).

BONDS:

Interest bearing securities (i.e. debit securities) issued by corporate entities and government.

MARKET CAPITALIZATION:

This is the market value of a company’s paid-up capital determined by multiplying the current quoted price by the total number of shares outstanding. The market capitalization of a security exchange is the aggregate market capitalization of all its quoted securities(Mbat2001).

EQUITY:

This is ownership capital held by individuals, corporate bodies and sometimes government in a company. It is also called ordinary shares (Pat &James, 2010).

NEW ISSUE:

Securities of a government or corporate entity newly created by offered for subscription to the public or to the selected group of investors. In the case of private placement or to a company’s existing shareholders are as with right issues. New issues are means of raising funds for development financing and to enlarge the paid-up capital of the company(Pat &James, 2010).ALLOTMENT:

A company whose security is traded on a stock exchange(Mbat2001).

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Tags: THE IMPACT OF CAPITAL MARKET ON ECONOMIC DEVELOPMENT OF AKWA IBOM STATE (A STUDY OF NIGERIAN STOCK EXCHANGE, UYO)

7 years ago 0 Comments Short URL

THE ROLE OF RATIO ANALYSIS IN BUSINESS DECISIONS A CASE STUDY OF O. JACO BROS. ENT. (NIG.) LTD., ABA, ABIA STATE

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

THE ROLE OF RATIO ANALYSIS IN BUSINESS DECISIONS A CASE STUDY OF O. JACO BROS. ENT. (NIG.) LTD., ABA, ABIA STATE

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The two primary objectives of every business are profitability and solvency. Profitability is the ability of a business to make profit, while solvency is the ability of a business to pay debts as they come due. (Hermanson et al, 1992: 824). However, the achievement of these objectives requires efficient management of resources of the business through planning, budgeting, forecasting, control, and decision – making. Also, the strengths and weakness of the business need to be identified and necessary corrective measures applied. Interestingly, accounting provides information that facilitates these functions.

Basically, accounting measures and communicates economic information needed for decision –making. Thus, the American Accounting Association (in Okezie, 2002:1) defined accounting as “the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by the information”. Statement and the Balance Sheet. The Income Statement shows the profitability or profitability or operational result of a business, while the balance sheet shows the solvency or financial position of a business.

Although profiles are often used as the basis for judging the performance of a business, such profits must be related to the various items of the financial statements in order to be meaningful and useful for decision making. Furthermore, owing to the summarized nature of financial statements, a lot of truths are hidden in them. Thus, they need to the analyzed and interpreted by means of financial ratios to enable the users understand the meaning of the absolute amounts shown in them, and make informed business decisions.

In this regard, Essien (2006:144) observed:

Financial statements carry lots of financial Information that are hidden in the figures. The figures in financial statements become more useful when they are related to each other or to some other relevant financial data. Therefore, users of financial information go a further step to establish relationships (or ratios) among selected data in financial statements.

According to Igben (1999:423), “Accounting {or financial} ratio is a proportion or fraction or percentage expressing the relationship between one item in a set financial statements and another item in the financial statements. Accounting ratios are the most powerful of all tools used in analyzed and interpreting financial statements”. Therefore, ratio analysis involves taking stats of number (or items) out of financial statements and forming ratios with them, to enhance informed judgments and decisions (Lasher, 1997:66).

MCShane et al. (2000:336) defined decision-making as “a conscious process of making choices among one or more alternatives with the interior of moving toward some desired state of affairs.” Therefore, business decisions can be defined as choices relating to the allocation and/or use of business resources to achieve business goals.

Decision-making calls information. Bittel et al. (1984:340) observed: “Managers want information because they need to make decisions. The proper use of information is an important part of decision-making.” Remarkably, one of the effective ways of providing information needed for decision-making is ratio analysis.

Yes, business dictions of make or buy, investment or divestment, expansion or contration, capital-organization and reconstruction, and so on cannot be properly made without the aid of financial ratios. They give cue to the financial strengths and weaknesses of a business, and highlight aspects of a business requiring further investigation.

Therefore, this research is carried out to show ratio analysis help managers, shareholders, investors, creditors, and other stakeholders make informed judgments and decisions about the past performance, present condition, and futures potential of a business.

1.2 STATEMENT OF PROBLEM

Financial information provided in financial statements are useful in business decisions. However, it must be noted that financial statements are means to an and not an end in themselves. Thus the use of financial statements in decision-making is not always easy owing to the following problems:

In view of the summarized nature of the information contained in financial statements, they need to be analyzed and interpreted by means of financial ratios to enable management and stakeholders understand them and make well-informed business decisions.

Many users of financial statements are not knowledgeable about accounting ratios and how the ratios can be applied to financial statements to aid decision-making.

Despite the immense benefits of ratio analysis, there are a lot of weaknesses or limitations associated with its use.

In view of the above stated problems, this research is embarked upon to identify the proper use of financial ratios, and the roles ratio analysis plays in business decisions.

1.3 OBJECTIVES OF THE STUDY

In consideration of the problems identified above, the objective of this research include.

To show how ratio analysis facilitates proper understanding of information contained in financial statements.

To show how ratio analysis aids business decisions.

To examine the techniques used in analysis financial statements.

To identify the usefulness of financial ratios in measuring and predicting the performance and financial position of a business.

To unravel the obstacles to the proper use of financial ratios in business decisions.

To suggest on ways to enhance efficient use of ratio analysis in decision-making.

1.4 RESEARCH QUESTIONS

Is ratio analysis useful in evaluating and prediction the performance of a business as well as intensifying areas that regret improvement?

Do you agree with the fact that ratio analysis facilitates proper understanding of information contained in financial statements?

iii. Is ratio analysis useful to management investors, shareholders and creditors in their business divisions?

Does financial ratio helps to unravel the mass of truth hidden in financial statements?

Are there obstacles that affect the proper use of ratio analysis in business decisions?

1.5 SIGNIFICANCE OF THE STUDY

The significance of this study is that on its completion, the following benefits will be derived:

The study will help management of O. Jaco Brros. Ent. (Nig.) Ltd, Aba and others to know how ratio analysis can help them understand the financial contained in financial statements and enhance their business decisions.

The findings of the research and the supportive reference materials will be of immense help to students in tertiary institutions and other researchers to investigate further in the area of study.

It is hoped that the result of the research will facilitate optimal business decisions when the recommendations are complied with.

The study will encourage businessmen, investors, managers, and government authorities to appreciate quantitative techniques like financial ratios when making economic and business decisions.

1.6 SCOPE OF THE STUDY

According to Akpakpan (2005:7), “scope of the study is the limits or boundary lines of the study. It is the areas covered by the research or the extent the researchers would go. Limitations of the study are hindrances or obstacles witnessed by the researcher in the course of the study. Which could influence his conclusions.”

In view of the impossibility of covering every type of financial statement, this study is therefore restricted to the analysis of the income statement and the Balance Sheet by means of financial ratios. However, other analytical techniques such as horizontal analysis, vertical analysis and termed analysis would also be explained and illustrated.

Finally, although University Ratio Analysis is the core of the study, nevertheless, multivariate Ratio Analysis would be partly illustrated using Du pont Equations.

1.7 LIMITATION OF STUDY

In the course of this research work, the researcher was faced with some constraints which plaved a limit he the ability and performance of the researcher encountered the following constraints among others.

Insufficient Financial: The researcher needed a lot of money to travel as far as Aba to collect the necessary data from the firm under syudy. Money was also required to visit secondary data sources such as the internet, libraries, professional bodies, and so on.

Lack of Co-Operation: The unco-operative attitudes of many employees of the firm under study were not encouraging. Some of them were so biased and prejudiced that did not care to understand the purpose of the research. This resulted to their failure to provide sufficient information required for proper completion of the study.

Time Pressure: Time allowed was not enough for thorough completion of the research, in consideration of the fact we were also facing other academic studies during the semester.

1.8 DEFINITION OF TERMS USED IN THE STUDY

Accounting: The process of recording, summarizing, analysis and interpreting financial (money-related) activities to permit individuals and organizations to make informed judgments and decisions. (Dansby et al., 2000: 1033).

Balance Sheet: A financial statement containing assets, liabilities, and owner’s equity or capital at a particular data or at the end of a particular period, to show the financial position of a organization. (Akpakpan, 2002:106).

Business: An activity, enterprise or organization established to provide goods and services at a profit, in order to satisfy human wants. (Ikon,2004:2).

Business Decision: Choices made on matters relating to the allocation and/or use of business resources for making, buying, selling, or supplying goods or services at a profit.

Decision-Making: A mental process by which an individual or group of individuals gather data and make a choice between two or more alternative courses action. (Ayandele, 2005:3).

Financial Ratio: A proportion, fraction, or percentage expressing the relationship between one item ion sett of financial statements and another item in the same financial statements. (Igben, 1999:423).

Financial Statement: Quantitative information on the economic activities of an organization prepared to show the result and the financial position of the entity, often presented in terms of Balance Sheet, Income Statement, Funds flow statement, and so on.

Income Statement: A financial statement often referred to as the trading and profit loss account, matching revenues against expense to show the profitability or operational results of an enterprise over a period of time, such as a month or year. (Hermanson et al. 1992:25).

Ratio: A fractional relationship of one number (or itme) to another. (Dansby et al. 2000:1047).

Ratio Analysis: A systematic review of accounting data by establishing relationships among various figures on the financial statements which bring together the results of the activities a business. (Omuya, 1983:430).

Role: The degree to which somebody or something is involved in a situation or an actively and the effect that they have on it. (Hornby et al.2000:1021).

1.9 BRIFF HISTORICAL BACKGROUND OF O. JACO BROS. ENT. (NIG). LTD. ABA STATE

Jaco Bros. Ent. (Nig) Ltd, Aba, Abia Sate was established in 1982. It started as a sole proprietorship business owned, runned, and managed by Nze Josephat Okolocha.

The firm is a trading concern. It specialized in sale, marketing, and distribution of various kinds of motorcycles, spare parts, and electric generators.

Meanwhile, in line with outstanding growth witnessed by the firm in the last couple of years, the organization is now an incorporated private limited liability company since 1999.

At present, the company has a total asset base of over N50 million and employs more than 30 workers. It has 6 branches. 4 in Aba, 1 in port Harcourt, and in Ekwulobia (Anambra State).

The head office located at 59, Jubilee Road, Aba, Abia State, (which is the center focus of this study), has 4 departments: the sales and marketing department, the purchasing and supply department, the Administration and personnel department, and the finance and Accounts Department.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

(1) Your project topics

(2) Email Address

(3) Payment Name

(4) Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

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Tags: ABA, ABIA STATE, THE ROLE OF RATIO ANALYSIS IN BUSINESS DECISIONS A CASE STUDY OF O. JACO BROS. ENT. (NIG.) LTD.

7 years ago 0 Comments Short URL

APPRAISING THE IMPACT OF COSTING TECHNIQUES ON PROFITABILITY (A STUDY OF MOSMANN WATER COMPANY LTD, UYO)

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

APPRAISING THE IMPACT OF COSTING TECHNIQUES ON PROFITABILITY (A STUDY OF MOSMANN WATER COMPANY LTD, UYO)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STDUY

Costing technique is the process depending upon the purpose for which management require information. Management information for a variety of purpose, such as control, decision making, predicting profits and price determination. Based on these, certain techniques and procedures are applied in order to have a comparative analysis about costs both directly and indirectly engaged in manufacturing service.

The Oxford Dictionary of Accounting 3rd edition (2005), defined costing techniques as techniques and procedures used in cost accounting and management accounting to obtain the cost of service, products, processes, and cost centers to provide the information required to undertake performance measures, decision making, planning and control. Costing technique is also termed as a technique of costing which is designed to suit the way goods are processed or manufactured or the way goods are provided, Lucy T. (2002). Therefore, each organization which uses costing techniques has unique features that will suit the company (firm).

Based on the above definitions of costing techniques an organization will field increase in profit if they apply the costing technique at where it is deemed appropriate. Therefore, this research is to examine costing technique as being applied in Mosmann Water Company Limited to see the impact it has created in the profitability of the organization.

1.2 STATEMENT OF THE PROBLEM

The rapid increase in competition among organizations has brought about an increase in awareness of profitability and the cost associated with the delivery of products and services.

These bring into question the relevance of traditional accounting information for decision making, conventional and managerial accounting information is largely driven by the procedures of the organizations reporting system which provides information that is to be aggregated and used. The problem is how to use this information to be planning and controlling of decision, vis avis profitability.

1.3 OBJECTIVES OF THE STUDY

The objectives of the study are to find out the following;

i) To examine if the impact of costing technique aid in the profitability of an organization.

ii) To find out if the appropriate costing technique is being adopted by Mosmann Water Company Limited.

iii) To determine whether costing techniques help in the ascertainment of costs of a specified thing.

iv) To find out the problems associated with the application of costing techniques in an organization.

v) To make useful recommendations based on research findings.

RESEARCH QUESTIONS

i) Does costing techniques aid in the profitability of an organization?

ii) Does costing techniques help in the ascertainment of costs in an organization?

iii) Which of the costing techniques is deemed appropriate to apply in an organization?

iv) What is the problem associated with costing techniques in an organization?

1.5 RESEARCH HYPOTHESES

HYPOTHESES 1

HO: There is no significant difference between costing techniques and profitability in an organization.

Hi: There is a significant difference between costing techniques and probability in an organization.

HYPOTHESES 2

HO: Costing techniques does not help in the ascertainment of a specified thing.

Hi: Costing techniques do help in the ascertainment of a cost.

1.6 SIGNIFICANCE OF THE STUDY

The ultimate goal of any industry or organization is to maximize profit. The goal can be achieve in the manufacturing or production company like Mosmann Water Company Uyo, through costing techniques on the probability of an organization.

The study is necessary because it would enable the employer and employee of Mosmann Water Company Limited to improve on the ethical behaviour in the management of the company.

It would be of immense benefits to investors who want to invest in the company and the shareholders of the company to earn more profit. It would also serve as a reference material (source) to researchers who might want to further studies in similar topic.

1.7 SCOPE OF THE STUDY

This study centered on appraising the impact of costing techniques on probability with a particular reference to Mosmann Water Company Limited, Uyo.

1.8 LIMITATION OF THE STDUY

This study is limited to the following ways;

TIME CONSTRAINT: The period within which the study is conducted is short for through research study; hence, gathering adequate information becomes very difficult.

FINANCE: This is one of the limitations to the scope of this study as the researcher is facing financial constraint to meet all the needed educational requirements including this research work. This caused the researcher to restrict her research work to one organization for possible study.

LACK OF MATERIALS: Lack of materials to topic is also another limitation to this research work, hence the researcher resolved to seek friendly approach in order to obtain the needed materials or information from the establishment under this study through the administration of questionnaire and oral interview.

1.9 DEFINITION OF TERMS

COST: According to CIMA defined cost as the amount of expenditure (actual or national) incurred on, or attributable to a specified thing or activity.

COSTING: Costing is defined as collecting, recording, classifying and allocating expenditure to ascertain the cost of product or service for planning and control purpose by indicating points where corrective action is required (Anuolam 1997).

TECHNIQUES: This is a method of achieving something or carrying something out especially one requiring some skill or knowledge (investopidia.com)

PROFITABILITY: This is the quality or state of being profitable.

STANDARD COSTING: This can be defined as preparation of standard costs and their use to clarify the financial results of a business particularly by the measurement of variations of actual costs from standard costs and analysis of causes of the variations for the purpose of maintaining maximum efficiency by executive action (Batty, 2006).

COSTING SYSTEM: This method is to be adopted by an organization depends upon the nature of productive being under taken by the organization (Kingsley, 2003).

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08068231953 or 08168759420

(1) Your project topics

(2) Email Address

(3) Payment Name

(4) Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

AFFILIATE LINKS:

Tags: APPRAISING THE IMPACT OF COSTING TECHNIQUES ON PROFITABILITY (A STUDY OF MOSMANN WATER COMPANY LTD, UYO)

7 years ago 0 Comments Short URL

ACCOUNTING RATIOS AS A TOOL FOR MANAGEMENT DECISION MAKING

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

ACCOUNTING RATIOS AS A TOOL FOR MANAGEMENT DECISION MAKING

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Omuya (1990) defined “accounting as a language of business, it is used in the business world to describe the transaction entered into by all kinds of organization. An analysis of the above definition shows that accounting centres on transforming data into information that would be useful to many users. It takes care of the financial communication of the entry as it supplies the financial information in a way and, form so desired by the users.

In a similar case Millichamp (1992) defined accounting as “the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in part at least of financial statement”. These users include owners, (shareholders) managers, suppliers, customers, government employees, etc. The users of these statements are expected to read, interpret and analyze them. Objectives of financial statements are not accomplished when many users of the statement cannot understand them, let alone interpret and analyze them.

The information the users attempt to gain from financial statement are; the ability of the business to pay its way and survive in the long run, the quality of management and the rightness of decision made, information that guide the future.

The management accounting is considered one of the most important components of the system of the administrative information in the company by providing the economic and financial information and collecting information taken from other systems of information in the company so it looks as accounting for inner affairs that helps the administration in making decisions, planning, controlling and evaluating the performance of the company’s activities , therefore it is not restricted to the known accounting principles but it depends on basis and regulations concerning the content and the shape of the inner reports (Al-Matarna, 2003).

1.2 STATEMENT OF THE PROBLEM

Regrettably, the inability of users of these financial statements to comprehend, interpret and analyze the and still has always contributed to harmful business and investment decision by the users of these statements. As a result of these wrong business decisions, many users of these statements have been rendered poor, whereas others are afraid and show indifference to investment and business opportunities. Cases abound where these financial statements users, individual and corporate, have lost millions of naira merely because of wrong business decisions.

The manufacturing sector consist of strings of financial activities whose major end is profit making, over the years the means and manner of measuring this financial performance remain issue of concern, the variables to use in the measurement of this performance is germane to growth and stability, the issue therefore is determining the variables to use in financial performance measurement and how well do these variables can measure the performance in the manufacturing sector.

1.3 OBJECTIVES OF THE STUDY

The objectives of this study are to find out the following:

i) To find out the impact of accounting ratios in the management decision making

ii) To examine whether accounting ratio aid in the effectiveness of an organization.

iii) To determine the techniques used in analysis financial statements.

iv) To identify the usefulness of accounting ratios in measuring and predicting the performance of Guinness Nigeria Plc.

v) The make useful recommendations based on the findings of this study.

1.4 RESEARCH QUESTIONS

The following research questions were formulated to guide this study:

i) What are the impacts of accounting ratios in the management decision making?

ii) Does accounting ratio aid in the effectiveness of an organization?

iii) What are the techniques used in analysis financial statements?

iv) Does the usefulness of accounting ratios in measure and predict the performance of Guinness Nigeria Plc?

1.5 RESEARCH HYPOTHESES

Hypothesis 1

H0: There is no significant relationship between the impacts of accounting ratios in the management decision making in Guinness Nigeria Plc.

H1: There is a significant relationship between the impacts of accounting ratios in the management decision making in Guinness Nigeria Plc.

Hypothesis 2

H0: There is no significant relationship between accounting ratio and the effectiveness of an organization.

H1: There is no significant relationship between accounting ratio and the effectiveness of an organization.

1.6 SIGNIFICANCE OF THE STUDY

The significance of this study is that on its completion, the following benefits will be derived:

The study will help management of Guinness Nigeria Plc and others to know how ratio analysis can help them understand the financial contained in financial statements and enhance their business decisions.

The findings of the research and the supportive reference materials will be of immense help to students in tertiary institutions and other researchers to investigate further in the area of study.

It is hoped that the result of the research will facilitate optimal business decisions when the recommendations are complied with.

The study will encourage businessmen, investors, managers, and government authorities to appreciate quantitative techniques like financial ratios when making economic and business decisions.

1.7 SCOPE OF THE STUDY

The study concerns about accounting ratios as a tool for management decision making with a particular reference to Guinness Nigeria Plc.

1.8 LIMITATION OF THE STUDY

In the course of this research work, the researcher was faced with some constraints which plaved a limit him the ability and performance of the researcher encountered the following constraints among others.

1. Insufficient Financial: The researcher needed a lot of money to travel as far as (please write your State) to collect the necessary data from the firm under study. Money was also required to visit secondary data sources such as the internet, libraries, professional bodies, and so on.

2. Lack of Co-Operation: The uncooperative attitudes of many employees of the firm under study were not encouraging. Some of them were so biased and prejudiced that did not care to understand the purpose of the research. This resulted to their failure to provide sufficient information required for proper completion of the study.

3. Time Pressure: Time allowed was not enough for thorough completion of the research, in consideration of the fact that we were also facing other academic studies during the semester.

1.9 OPERATIONAL DEFINITION OF TERMS

1 Ratio: A ratio can be defined as the indicated quotient of to mathematical expression and as the relationship between two or more things.

2 Ratio Analysis: It is defined as the systematic use of ratio to interpret the financial statements so that the strength and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two variables.

3 Accounting: It is the process of recording, summarizing, analysis and interpreting financial (money-related) activities to permit individuals and organizations to make informed judgments and decisions.

4 Business: It is an activity of enterprise or organization established to provide goods and services at a profit, in order to satisfy human wants.

5 Business Decision: The choices made on matters relating to the allocation and/or use of business resources for making, buying, selling, or supplying goods or services at a profit.

6 Decision-Making: It is defined as a process by which an individual or group of individuals gather data and make a choice between two or more alternative courses action.

7 Financial Ratio: A proportion, fraction, or percentage expressing the relationship between one item ion set of financial statements and another item in the same financial statements.

8 Financial Statement: This is quantitative information on the economic activities of an organization prepared to show the result and the financial position of the entity, often presented in terms of Balance Sheet, Income Statement, Funds flow statement, and so on.

9 Income Statement: A financial statement often referred to as the trading and profit loss account, matching revenues against expense to show the profitability or operational results of an enterprise over a period of time, such as a month or year.

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Tags: ACCOUNTING RATIOS AS A TOOL FOR MANAGEMENT DECISION MAKING

7 years ago 0 Comments Short URL

EFFECT OF TAX MORALE ON TAX COMPLIANCE IN NIGERIA (A CASE STUDY OF IKORODU LOCAL GOVERNMENT AREA LAGOS)

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BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

EFFECT OF TAX MORALE ON TAX COMPLIANCE IN NIGERIA (A CASE STUDY OF IKORODU LOCAL GOVERNMENT AREA LAGOS)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF STUDY

The concept of Quid Pro Quo applies to every facet of life-taxation inclusive. An average tax payer expects something of value in return from the government for taxes paid (Adebisi and Gbegi, 2013). When this value is not returned to the taxpayers, tax morale may drop gradually, leading to tax evasion. In Nigeria today, tax is regarded as one of the major sources of government funds. Taxation is one of the most discuss issue in government in both developed and developing countries. James and Noble 1992 in their research defined tax as a compulsory levy by a public authority for which nothing is received directly in return. Nightingale in the year 2001 defined tax as compulsory contribution, imposed by government, and while taxpayers may receive nothing identifiable in return for their contribution, they nevertheless have the benefit of living in a relatively educated, healthy and safe society. She went on to on to explain more about taxation as part of the price to be paid for an organized society and identified six reasons for taxation; below are some of the six reasons for taxation:

1. provision of public goods

2. redistribution of income and wealth

3. promotion of social and economic welfare

4. economic stability and harmonization and

5. Regulation.

In other words tax can also be defined as a particular amount levied on the citizens by the government against the income, profits, property, wealth and consumption of individuals and corporate organizations to enable government obtain the required revenue to provide basic amenities, security and well-being of the citizens. The term taxation has long being known since the time of the Egyptians under the rulership of Pharaoh according to (Webber and Wildavsky, 1986).

Pharaoh did great by placing his tax collectors on high salaries so as to remove their eyes from fraud. In Nigeria today the issue of corruption is a major clog of the efficiency of tax collection in most part of the country especially in the Ikorodu part of Lagos State in Nigeria.

The issue of tax according to Allingham and Sandmo (1972), in his research stated that corruption of the tax agency is still an issue, especially in developing countries according to the traditional model of tax compliance. The level of corruption in the administration of tax tends to be on the increase; imagine a situation where a taxpayer will manipulate his or her own figure with claim on a poor income on their tax return by solving an expected utility-maximization problem that trade off the tax savings from a poor reporting of true income against the risk of audit and penalties for detected noncompliance.

1.2 STATEMENT OF PROBLEM

The standard of living in Nigeria is on the decline and the unwillingness of taxpayers to comply with the payment of tax today tends to become an issue. The average human being abhors the payment of tax. He sees taxation as a discredited imposition and evidently obnoxious. This stems mainly from the absence of a “quid pro quo” i.e. something of value given in return (by the government) for taxes paid. Taxes, it is commonly argued, should not be paid as the authority does not provide amenities which are in any way commensurate with the taxes paid. There is no guaranteed compensation benefit (Adebisi and Gbegi, 2013). The federal government of Nigeria has put in so much effort to administer tax in the development of the Nigeria economy but most of the effort seems abortive as the level of corruption is on the increase. Take Ikorodu local government area of Lagos for instance; most of the inhabitants of this area are petty trader and peasant farmers; compliance to payment of tax tend to become a problem; their reason being that they operate on a small scale and yet the level of tax levied on them is much. There moral for compliance to the payment of tax tends to be on the decrease.

1.3 AIMS AND OBJECTIVES OF STUDY

The major aim of this study is to examine the effect of tax morale on tax compliance in Nigeria. Other specific objectives of the study includes

1. To examine the causes of tax evasion in Nigeria.

2. To examine the level of tax compliance in Ikorodu local government area.

3. To determine the relationship between tax morale and tax compliance in Ikorodu local government area, Lagos state.

4. To recommend ways improving tax morale in Ikorodu l0ocal government area, Lagos state.

1.4. RESEARCH QUESTIONS

1. What are the effects of tax morale on tax compliance in Nigeria?

2. What are the causes of tax evasion in Nigeria?

3. What is the level of tax compliance in Nigeria?

4. What is the relationship between tax morale and tax compliance in Nigeria?

5. What are the ways of improving tax compliance in Nigeria?

1.5. RESEARCH HYPOTHESES

H0: tax morale does not affect tax compliance in Nigeria

H1: tax morale affects tax compliance in Nigeria

H0: there is no significant relationship between tax morale and tax compliance in Nigeria

H1: there is a significant relationship between tax morale and tax compliance in Nigeria

1.6. SIGNIFICANCE OF THE STUDY

This study would be of immense important to government at all level especially the government of Lagos state in formulating efficient tax policies that would improve tax compliance. This study would also benefit students, researchers and scholars who are interested in tax morale and compliance.

1.7. SCOPE OF THE STUDY

This study is restricted to the effect of tax morale on tax compliance in Nigeria with a case study of Ikorodu local government area of Lagos state

1.8 Limitation of the study

1. 1. Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

2. 2. Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.9. DEFINITION OF TERMS

TAX MORALE: Tax in accordance to the study is simply the willingness to pay tax

EVASION: Tax evasion in accordance to the study may be define as the deliberate negative attitude of tax payer towards payment of tax

CORRUPTION:this is simply the fraudulent attitudes of taxpayer in the payment of tax

COMPLIANCE: compliance according to the study is simply the willingness of a taxpayer to pay tax with ease without complain.

REFERENCE

Abdulrazaq, M.T. (1993). Principles and practice of Nigerian tax planning and management. Ilorin: Batay Publications Limited.

Adebisi, J.F. & Gbegi, D.O. (2013). Effect of Tax Avoidance and Tax evasion on Personal Income Tax Administration in Nigeria. American Journal of Humanity and Social Sciences. Vol 1. No.3

Aitken, S. & Bonneville, L. (1980). A general taxpayer opinion survey. Washington D.C: Internal Revenue Service.

Asika, N. (2000). Research methodology in the behavioral sciences. Lagos: Longman Nigeria Plc.

Attwell, R.L. & Sawyer, A. J. (2001). The ethical attitudes of New Zealand tax practitioners-still „barely passing‟? New Zealand Journal of Taxation Law and Policy, 7(2).

Australian Taxation Office (1997). Australian Taxation Office annual report 1996-1997,Canberra: Commonwealth of Australia.

Ayres. F. L. & Braithwaite, J. (1992). Responsive regulation: transcend the deregulation debate, New York, Oxford University Press.

Beck, P., Davis, J. & Jung, W. (1994). Tax advice and reporting under uncertainty: theory and an experimental evidence. Illinois: University of Illinois.

Braithwaite, V. & Braithwaite, J. (2000). An evolving compliance model for tax enforcement. In N. Shover and J.P. Wright (Eds.) Crimes of privilege. New York: Oxford University Press.

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7 years ago 0 Comments Short URL

EFFECTIVE ACCOUNTING INFORMATION SYSTEM: AN IMPERATIVE FOR PROFIT PERFORMANCE

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BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

EFFECTIVE ACCOUNTING INFORMATION SYSTEM: AN IMPERATIVE FOR PROFIT PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Accounting Information Systems (AISs) are a tool which, when incorporated into the field of Information and Technology systems, are designed to help in the management and control of topics related to organization’ economic-financial area. But the stunning advance in technology has opened up the possibility of generating and using accounting information from a strategic viewpoint (El Louadi, 1998). Accounting Information System (AIS) is vital to all organizations (Borthick and Clark, 1990; Curtis, 1995; Rahman et al., 1988; Wilkinson, 1993; Wilkinson et al., 2000) and perhaps, each organization either profit or non profit-oriented need to maintain the AISs (Wilkinson, 2000: 3-4). On the other hand, an AIS is the whole of the related components that are put together to collect information, raw data or ordinary data and transform them into financial data for the purpose of reporting them to decision makers (LI, M., YE, L.R. 1999).To better understand the term ‘Accounting Information System’, the three words constitute AIS would be elaborated separately. Firstly, literature documented that accounting could be identified into three components, namely information system, “language of business” and source of financial information (Wilkinson, 1993: 6-7). Secondly, information is a valuable data processing that provides a basis for making decisions, taking action and fulfilling legal obligation. Finally, system is an integrated entity, where the framework is focused on a set of objectives (Watts, 1999).

Accounting literature argues that strategic success is considered an outcome of Accounting Information Systems (AIS) design (Langfield-Smith, 1997). Several, studies have analyzed the impact of AIS in strategic management, examining the attributes of AIS under different strategic priorities (Ittner and Larcker, 1997; Bouwens and Abernethy, 2000). It has also been analyzing the effect on performance of the interaction between certain types of strategies and different design of AIS (e.g. different techniques and information). The appropriate design of AIS supports business strategies in ways that increasing the organizational performance (Chenhall, 2003). Increasing AIS investment will be the leverage for achieving a stronger, more flexible corporate culture to face persistent changes in the environment. Innovation is the incentive with which a virtuous circle will be put in place, leading to better firm performance and a reduction in the financial and organizational obstacles, while making it possible to access capital markets. AIS are systems used to record the financial transactions of a business or organization. AIS combines the methodologies, controls and accounting techniques with the technology of the IT industry to track transactions, provide internal reporting data, external reporting data, financial statements, and trend analysis capabilities to affect on organizational performance (GUL, F.A. 1991).

In managing an organization and implementing an internal control system the impact of accounting information system (AIS) is crucial. An important question in the field of accounting and management decision-making concerns the fit of AIS with organizational requirements for information communication and control (Nicolaou, 2000). Benefits of accounting information system can be evaluated by its impacts on improvement of decision-making process, quality of accounting information, performance evaluation, internal controls and facilitating company’s transactions (Bolon, 1998).

1.2 STATEMENT OF THE PROBLEM

Currently, most organizations continue to increase spending on information system and their budgets continue to rise. Moreover, economic conditions and competition create pressures about costs of information. Generally, information system is developed using information technology to aid an individual in performing their job. Therefore, most organizations focus on developing information system in order to support decision system, communication, knowledge management, as well as many others. The key part of information system needed for decision making in organization is accounting information system.

Today, information technology and an increasingly transparent financial sector have become key driving forces in business operations, strategies, structures, ownership, and performance. These forces cut across many industries to force changes that, in turn, have had significant economic and social impacts on the organizational effectiveness (Doms, Jarmin and Klimek, 2004). Structurally, the emerging information technology industry is uncharacteristic of typical a traditional process which has gradually grown out of the need to increase efficiency and cut on operations costs in the industry. Therefore, this study seeks to examine the effectiveness of accounting information system in the performance of profit making organization.

OBJECTIVES OF THE STUDY

The objectives of the study are to find out the following:

To examine the impact of accounting information systems on the effectiveness of performance in an organization.

To determine whether accounting information system enhance the effective decision making in Anchor Insurance Company Limited, Uyo.

To determine whether accounting information system increase profitability of an organization.

To find out the problems confronting Anchor Insurance Company Limited, Uyo in maintaining effective accounting system.

To make useful recommendations based on research findings.

1.4 RESEARCH QUESTIONS

The following research questions were formulated to guide this study:

Does accounting information system increase profitability in Anchor Insurance Company Limited?

What are the impacts of accounting information systems on the effectiveness of performance in an organization?

Does accounting information system enhance effective decision making in Anchor Insurance Company Limited, Uyo?

Are there any problems confronting Anchor Insurance Company Limited, Uyo in designing effective accounting system?

1.5 RESEARCH HYPOTHESES

The following research hypotheses were formulated to guide this research:

Hypothesis 1

H0: There is no significant relationship between accounting information system and increase profitability in Anchor Insurance Company Plc.

H1: There is a significant relationship between accounting information system and increase profitability in Anchor Insurance Company Plc.

Hypothesis 2

H0: There is no significant relationship between the impacts of accounting information systems and the effectiveness of performance in an organization.

H1: There is a significant relationship between the impacts of accounting information systems and the effectiveness of performance in an organization.

1.6 SIGNIFICANCE OF THE STUDY

The study is of key significance to Anchor Insurance Company Plc as well as other firms in the same sector in terms of determining the benefits accruing due to the integration of accounting information systems in their operations. This enabled insurance firms in gauging the model in terms of enhancing organizational effectiveness. The study is useful to other researchers interested in the problem under investigation as the study has laid a platform on which further studies related to the subject can be undertaken.

The study would provide a theoretical basis about accounting information system successful adoption dimension to firms. It would provide practical guidance for accounting information systems implementation in other areas and it would also provide empirical and practical contributions for organization in effectively applying accounting information system in their operations.

Accounting information systems provide information about the financial resources, obligations, and activities of an enterprise that is intended for use primarily by external decision makers – investors and creditors. This study provides useful information in making investment and credit decisions.

1.7 SCOPE OF THE STUDY

The study concerns about effective accounting information system an imperative for profit performance with a particular reference to Anchor Insurance Company Plc, Uyo.

1.8 LIMITATION OF THE STUDY

The limitation of this study was inability of management to divulge certain information which they consider sensitive and fear of publication which might be detrimental to their operation.

Also, the outright inability of some respondents to complete and return the questionnaire to the researcher is one of the limitations of the study.

Another limitation to the study was traffic congestion for the researcher to meet them in their offices and for possible return of the questionnaire.

Finally, the researcher observed the non-cooperative attitude of some workers of the company to make information available for her.

1.9 DEFINITION OF TERMS AND ACRONYMS

a) ACCOUNTING: This is defined as the process of identifying, measuring, and communicating economic information to permit informed judgements and decisions by users of the information (Frank Wood & A. Sangster, 2005).

b) ACCOUNTING INFORMATION SYSTEM: Accounting Information System is defined as is a computer based system that increases the control and enhances the cooperation in the organization (Nicoloau, 2000).

c) INSURANCE: It is social way of providing financial compensation for the effects of misfortune, the payments being made from the accumulated contribution of all parties participating in the scheme.

d) PROFIT: This is a sum in which the business made after the deduction of all the expenses and it can be withdrawn from a business while maintaining the capital that existed at the beginning of the business

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7 years ago 0 Comments Short URL

BUDGETING AS AN INSTRUMENT OF ADMINISTRATIVE CONTROL OF PUBLIC AGENCIES IN NIGERIA (A STUDY OF MINISTRY OF FINANCE, UYO)

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INFORMATION:

BUDGETING AS AN INSTRUMENT OF ADMINISTRATIVE CONTROL OF PUBLIC AGENCIES IN NIGERIA (A STUDY OF MINISTRY OF FINANCE, UYO)

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Budgeting and budgetary control will continue to play a significant role in public organizations in Nigeria, considering the need to compete favorably with other organizations (both public and private) and make sure the organization is a going concern, most government agencies have adopted budgets and budgetary control techniques to effectively and efficiently allocate resources and achieve stated goals.

Every Business oriented organization is aimed among other at making profits as high as possible. All efforts, therefore are diversified at effective planning process with a maximum cost involvement in its decision making drive towards achieving the desired objectives, management often provides basic guideline which are quantified in financial terms and it mineral values.

Budgeting is required to achieve many deferent aims within an organization, if not only aid in planning, co-ordinations and communicating the activities of the organization, but also as a control and motivating devices in the management of the management of the organization.

Budgeting call for effective monitoring and controlled by the head of the organization since budget animates from different sections departments and all the branches of a company which no company is an exception so as to guarantee its reliability and also minimize deviation from plans. Budgeting starts with the setting out of the objectives of the organization by the management for the budget year according to government’s fiscal and monetary guideline and policies. The top management staffs must communicate the policy affect the long term plan to those who are responsible for preparing the current year budget. The manager prepare the minimal budgets for those area for which they are responsible and submit it to their supervisory officer while the budget is examined and summarized into master budget which consists of budgeted profits and loss accounts, balance sheet and the cash statement.

The approval of the master budget constitute authorities of the manager countered in carrying out the plants while are contained in each budget.

For management to provide adequate control over the over the budget of an organization, It should co-ordinate all the various phrases of the firms activities and the collaboration of the responsible parties in achieving the actual results with budget to establish the variance. It should trace the variances to where it arose so as to control the various effectively.

1.2 STATEMENT OF THE PROBLEM

The decision as to how to distribute limited financial and non-financial resources, in an effective and efficient manner, is an important challenge in all organizations. In government agencies, this task would be nearly impossible without budgeting. Without effective budget analysis and feedback about budgetary problems, many organizations and government agencies would become bankrupt. Some of the problems arise from inadequate data to formulate and implement a proper budget; and non existence of well defined structure, which leads to overlapping of duties. These deficiencies can therefore be addressed through the use of budgeting instrument. Therefore, this study traces the extent by which budgeting can used as a good planning and controlling tool in Ministry of Finance, Uyo.

1.3 OBJECTIVES OF THE STUDY

The main aim of the study is to examine budgeting as an instrument of administrative control of public agencies in Nigeria. Specific objectives of the study are:

To find out whether budgetary aid effective planning and control in Ministry of Finance, Uyo.

To examine whether budgeting control is used as an instrument of enhancing organizational performance.

To examine whether budgetary control affect the working performance of employees in Ministry of Finance, Uyo.

To determine whether budgetary control has contributed to the success of Ministry of Finance, Uyo.

1.4 RESEARCH QUESTIONS

In-order to guide the study and achieve the stated objectives for the study, the following research questions was formulated:

Does budgeting aid effective planning and control in Ministry of Finance, Uyo?

Does budgetary control used as an instrument of enhancing organizational performance?

Has budgetary control contributed success of Ministry of Finance, Uyo?

Does budgetary control affect the working performance of employees of Ministry of Finance, Uyo?

1.5 RESEARCH HYPOTHESES

HYPOTHESIS 1

H0: Budgetary does not aid effective planning and control in Nigeria in Ministry of Finance, Uyo.

HYPOTHESIS 2

H0: Budgetary control does not used as an instrument of enhancing organization.

1.6 SIGNIFICANCE OF THE STUDY

The addition of knowledge is basically the aim of every research and this research work seeks to achieve just that. More importantly, this research is necessary in understanding how the budgetary control is established, and also how it affects organizational performance.

It is a tool which measures managerial performance of an organization and promotes good morale and harmony in the organization. It enable the organization verify whether or not the plans of the organization are understood by all members, and put into effect corrective measures where deviation or under deviation is occurring.

Since budget is a tool for planning, and financial planning is of almost significance to a business man, it enables the organization project the future consequences of present decisions in order to avoid surprises and understand the link between present and future decision.

1.7 SCOPE OF THE STUDY

The study examines budgeting as an instrument of administrative control of public agencies in Nigeria, using Ministry of Finance, Uyo as a study area.

1.8 LIMITATION OF THE STUDY

The study limitation was inability of management to divulge certain information which they consider sensitive and fear of publication which might be detrimental to their operation.

Distance and its attendant cost of travel in order to obtain information which to write this study was also a major limitation. Another limitation to the study is short time factor which did not give time for thorough research work, hence gathering adequate information becomes very difficult.

Finally, lack of materials on the topic; this is new in the area of budgeting as an instrument of administrative control of public agencies in Nigeria. Therefore, the researcher resolved to seek friendly approach in order to obtain the needed materials or information from the organization under study through the administration of questionnaire.

1.9 DEFINITION OF TERMS

BUDGET: The chartered institute of management Accountants (CIMA) defines budget as “a plan quantified in monetary terms, prepared and approved prior to a defined period usually one year, showing planned income to be generated and expenditure to be incurred during that period, and he capital to be employed to attain that objective.

BUDGETARY CONTROL: This is the establishment of a budget relating the responsibilities of executives to the requirements of a policy and the continuous comparison of actual with budgeted results either to secure the individual actions with the objective of that policy or to provide a basis for its revision.

PLANNING: This is the establishment of objectives, and the formulation, evaluation and selection of the policies, strategies, tactics, and action required to achieve these objectives.

CONTROL: This s the process of ensuring that a firm’s activities conform to its plans and that its objectives are achieved.

VARIANCE: this is the difference between planned (budgeted) and actual results.

FAVOURABLE VARIANCE: This is excess of the budgeted result over the actual result, in the case of cost. But in the case of revenue it is the excess of that result over the budgeted.

UNFAVOURABL VARIANCE: this is the excess of actual result are the budgeted in terms of cost and vice-versa in terms of revenue.

BUSINESS: Any establishment which has profit motive or maximization as its major objectives.

ORGANIZATION: All establishment whether government or privately owned

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Tags: BUDGETING AS AN INSTRUMENT OF ADMINISTRATIVE CONTROL OF PUBLIC AGENCIES IN NIGERIA (A STUDY OF MINISTRY OF FINANCE, UYO)

7 years ago 0 Comments Short URL

INTERNAL AUDIT FUNCTIONS AND PRODUCTIVITY (A STUDY OF UYO LOCAL GOVERNMENT COUNCIL, UYO)

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

INTERNAL AUDIT FUNCTIONS AND PRODUCTIVITY (A STUDY OF UYO LOCAL GOVERNMENT COUNCIL, UYO)

ABSTRACT

This study explored the internal audit functions and productivity in Uyo Local Government Council. The study set to find out the extent the auditing unit of the Uyo local government council has so far functioned. Then, to what extent has the internal audit unit been assessed in terms of its financial tract records. The design survey method was adopted for this study. The population of the study was 98. Then, the study’s sample which was determined from the study’s population through the Taro Yamani (1964) statistical tool was 82. In analyzing the obtained data the researcher adopted the simple percentage and statistical tools. In testing the hypotheses, the researcher used the Chi-square. Findings revealed that auditing was effectively done in the internal audit unit of Uyo local government council. Secondly, the internal audit unit of Uyo Local government council was not subjected to regular scrutiny. Lastly, the internal unit of Uyo Local government council was not equipped with enough digital machines to effect and ascertain the internal auditing. Based on these findings, the study recommended that the internal audit unit of Uyo Local government council be checked on routine basis, secondly, digital machines and modern ICT equipments for saving data be provided to the audit unit of Uyo Local government council. Also auditing personnel be trained on routine basis.

TABLE OF CONTENT

Cover page

Title page

Certification – – – – – – – – ii

Dedication – – – – – – – – iii

Acknowledgement – – – – – – iv

Abstract – – – – – – – – – vi

Table of contents – – – – – – – vii

CHAPTER ONE: INTRODUCTION

1.1 Background to the study – – – – – 1

1.2 Statement of the problem – – – – – 3

1.3 Objective of the study – – – – – 4

1.4 Research Question – – – – – – 5

1.5 Research Hypotheses – – – – – 6

1.6 Significance of the study – – – – – 7

1.7 Scope of the Study – – – – – – 9

1.8 Limitation of the study – – – – – 9

1.9 Definition of terms used in the study – – – 10

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 Introduction – – – – – – – 15

2.2 Auditing in the present age – – – – 15

2.3 Features of internal Audit – – – – – 17

2.4 Relationship between internal auditing and

Internal control – – – – – – – 19

2.5 Distinction between internal audit and

External audit – – – – – – – 22

2.6 Quality of Staff and staff strength of

internal audit department – – – – – 23

2.7 Problem affecting internal control/audit – – 24

2.8 Common approaches to internal audit – – 24

2.9 Function and Productivity of internal audit- – 26

2.10 Responsibilities of internal auditor – – – 27

2.11 Internal Auditor approaches in achievement of the

Goals – – – – – – – 29

CHAPTER THREE: RESEARCH DESIGN AND

METHODOLOGY

3.1 Introduction – – – – – – – 30

3.2 Area of the study – – – – – – 31

3.3 Population of the study – – – – – 31

3.4 Sample size and sampling technique – – – 32

3.5 Description of research instrument – – – 32

3.6 Validity and reliability of the instrument – – 33

3.7 Method of data collection – – – – – 34

3.8 Method of data analysis – – – – – 35

CHAPTER FOUR: PRESENTATION, ANALYSIS

AND INTERPRETATION OF DATA

4.1 Introduction — – – – – – – 36

4.2 Data presentation and analysis – – – – 36

4.3 Testing of Hypotheses – – – – – 43

4.4 Interpretation of Data – – – – – 48

CHAPTER FIVE: SUMMARY, CONCLUSION

AND RECOMMENDATIONS

5.1 Introduction – – – – – – – 51

5.2 Summary – – – – – – – – 51

5.3 Conclusion – – – – – – – 52

5.4 Recommendations – – – – – – 53

References – – – – – – – – 55

Appendices – – – – – – – 58

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

The industrialization and dynamism of modern administration has created a vacuum to be filled by qualified and competent auditors. Our country Nigeria has a large number of Local Government Areas with an established internal audit unit in operation. Therefore, carrying out a research on the local government council is essential since the project work intend to achieve by consideration the function and productivity of the internal audit system in Uyo Local Government Council of Akwa Ibom State, Nigeria.

Auditing is a system that links management and the actual field of administration (Onu-chukwu, 1985). Internal audit is an independent function of auditing records, appraising the procedures and organization of a business and reviewing the effectiveness financial stability of the system of the internal checks with the aim of establishing a systematic disciplined approach that will aid in the evaluation of and improvement of the effectiveness of risk management, control and governance processes. Primarily, the internal audit function is to provide independent assurance over the internal controls and risk management of the Local Government council.

The system of internal check, audit or control in force in any undertaking is very important to the internal auditor because his task is to satisfy himself that the system is kept up to an efficient standard and also keep the system abreast of changes as are required. Onu-chuku (1985), described internal control as an independent appraised function established within an organization to examine and evaluate its activities as a service to the organization.

Internal audit is concerned with the liability and adequacy of the accounting system through reliability and integrity of financial and operations information, effectiveness and efficiency of operation and material usage, compliance with laws, regulations, policies and procedures, adequacy and effectiveness of risk management frame work. The productivity of the internal audit system has to do with the extent to which the internal audit function has assessed and affected the administrative activity of the council.

1.2 Statement of the Problem

It is important to note that auditing is an exercise done in order to verify the accounting procedures undertaken by the audit bureau of Uyo Local Government council as the one obtainable in Uyo Local Government Council. Productivity can only be seen if a Local Government Council is well audited against financial misappropriation. In addition, auditing brings about sanity in an establishment. However, Uyo Local Government Council has been audited but a pertinent question arises: has the council been audited on regular or routine basis? If done are there accountability misappropriations discovered in the course of verification?

This study therefore wants to find to what extent the internal audit of Uyo Local Government Council been audited externally?

1.3 Objectives of the Study

To find out whether the internal audit of Uyo Local government Council is still functioning.

To appraise the contributions of the internal audit of Uyo Local Government Council toward the staff productivity.

To find out to which extent the internal audit unit of Uyo Local Government Council has been checked.

To identify the problems associated with the internal audit of Uyo Local Government Council.

1.4 Research Questions

The research questions formulated were:

What is the current functional status of Uyo Local Government Council?

How could we appraise the contributions of the internal audit unit of Uyo Local Government Council toward the staff productivity?

What extent the internal audit unit of Uyo Local Government Council has been checked?

What are the problems associated with the internal audit unit of Uyo Local Government Council?

1.5 Research Hypothesis

Research hypotheses were formulated in null and alternative statements.

Ho: There is no significant relationship between internal audit function and productivity in Local Government Council.

H1: There is significant relationship between internal audit function and productivity in Local Government Council.

Ho: There is no significant relationship between internet audit function and detection of error and fraud in Uyo Local Government Council.

H2: There is significant relationship between internal audit function and productivity in Local Government Council.

1.6 Significance of the Study

It may seem unbelievable to discover that many citizen of this country still lack of fundamental idea or knowledge of internal audit function and productivity. It is therefore the aim of this study to examine internal audit function and productivity. This study will enlighten the public on how to ascertain the concept of internal audit function and productivity in the company. The study will also provide critical information to government, companies at all level in their effort in managing internal auditors. However, the study will act as source of reference for further researches on this subject.

Specifically, the research will provide useful and meaningful insight into weakness in the current internal audit in the oil company and provide useful information for making changes in the implementation of audit function. The research will serve as a fuel of new reasoning and further research work in audit practice in the organization. The impact of the study on both accounting and auditing theory practice and standards could be tremendous. It is agreed by the researcher that the study shall be of immense benefits to the accounting students of higher institution, management of Uyo Local Government council and seasoned professional Accountants.

1.7 Scope of the Study

This study is intended to internal audit function and productivity in the. Local Government Areas using Uyo Local Government Council.

1.8 Limitation of the Study

Staff Reluctance: In most cases the staff of the used study often feels reluctance over providing required information required by the researcher. This result in finding information where the structured questionnaires could not point out.

Researcher’s Commitment: The researcher, being of full time student spent most of her time on other academic activities such as test, class work, assignment, examination etc which takes average focus from this study.

Inadequate Materials: Scarcity of material is also another hindrance. The researcher finds it difficult to long hands in several required material which could contribute immensely to the success of this research work.

Means of Transportation: At times, means of transportation in the geographically zone (Uyo) always delayed the researcher from meeting up with the personnel of the used study at their scheduled period of time.

1.9 Definition of Terms used in the Study

To enable readers and researchers have clear insight of this work terms are defined below:

Internal Audit: Is described as an independent objective assurance and consulting activity designed to add value and improve organizations operations. It helps an organization to accomplish its objectives by bringing a systematic disciplined approach to evaluate and improve the effectiveness of risk management control and governance processes.

According to Spice Pegier (1978), Audit may be seen as examination of the accounting books and vouchers of a business or other organization that will enable the auditor to report that in this opinion the balance sheet is properly drawn up so as to give a true and Fairview to the profit or loss for the financial period. Based on the meaningful information and explanation given to him and as shown by the book and if not to report in what respects is he not satisfied.

Accounting System: Royal Linlbery and Chon (1972) hold that accounting system is the total structure of record and procedures which discover record, classify and report information or on the financial position of a government unit or any funds balance account of a group and organizational components.

Chartered Accountant: Is a member of an institute of Chartered accountant. In Nigeria, the admission to such institute is dependent upon seeming a period of apprenticeship and passing an entrance examination.

Independent Auditor: This is a person who is independent of the governmental unit or agency where accounts are being audited.

Auditing Procedures: According to R. Glymme Williams (1974). He defined auditing procedures as acts to perform during the course of an examination. Auditing procedures are based on professional judgment applicable in the circumstances.

Audit technique: R. Glymm Williams (1974) defined audit technique as a method or details procedures essentials to express or execution in an art of science technique and procedures are classed related.

Auditing Standards: These are measuring devices or models to which the audit must perform.

Auditing: the Institute of Chartered Accountant in England and Wales defined auditing as

“the independent examination and investigation of the books, accounts and vouchers of a business with a view of enabling the auditor to report whether the balance sheet and profit and loss account are properly drawn up so as to show a true and fair view of the state of affairs and the profit and loss of the business according to the best of the information and explanation obtained by the auditor”.

Productivity: According to Mali (2006) productivity is defined as the measure of how well resources are brought together in organization and utilized for accomplishing a set of results. Productivity is reaching the highest level of performance with the least expenditure of resources. It is the effective user of the factors of production to produce goods and services that means productivity is the output resulting from a given resources input in a given time.

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Account Name: AMUTAH DANIEL CHUKWUDI

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Tags: INTERNAL AUDIT FUNCTIONS AND PRODUCTIVITY (A STUDY OF UYO LOCAL GOVERNMENT COUNCIL, UYO)

7 years ago 0 Comments Short URL

THE ROLE OF ACCOUNTING IN THE CONTROL OF PUBLIC EXPENDITURE

ATTENTION:

BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:

THE ROLE OF ACCOUNTING IN THE CONTROL OF PUBLIC EXPENDITURE

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

In most developing countries including Nigerian government participation in economic activity is usually significant. One of the ways through which government has intervened in Nigerian economy is through the establishment of public enterprises and statutory bodies operating service of an economic or social character on behalf of the government (Kanu, 2012).

Since the colonial era, especially after independence 1960, Nigerian public enterprises have witnessed a steady growth unit recently. Beginning as a trickle in the period between this era of the second world war and Nigeria risen to flood level since independence the establishment of public enterprise in Nigeria are many add to available rational capital for the support of development and welfare programme, making to be controlled by a few individual, it possible for important profitable enterprise to be controlled by a few individual or group organization certain critical activities national survival and economic stability and providing employment opportunities (Ademolukun, 1983). However, after a long period of growing starts intervention in the Nigeria economy through public enterprises, the 1980’s onwards had witnessed a reversed which has sometimes been dramatic in public opinion therefore public policy.

This has been brought by the persistent losses which state enterprises that trivet been running over fears. Consequently, there has been a willingness to look at alternative policy strategies for the achievement of economic development. At the forefront of these strategies is the minimization privatization of public enterprises.

In Nigeria, public enterprises are engaged in a while spectrum of economic activities including agriculture, mining, construction, manufacturing, commerce and services. The classification of public enterprises in Nigeria has been made according to varieties of criteria by different authorities. The public service review commission (2009) classified public sector into public utilities, regulatory of service body, financial institutions and commercial and industrial enterprises

Being a mixed economy, individuals also own and operate private enterprises. A firm classified as private enterprises when it is founded and managed by an individual and or a group of individual. These firms are expected to be registered in the local government within which they operate. The rational for the establishment of private enterprises are numerous just like establishment of public enterprises (Osumbor, 2001). The author continued that they include amongst others; provision of employment opportunities generating income for the owner of the enterprises, government interest in profit growth of the enterprises which performance of the public sector through competition. Osumbor (2001) further mentioned that moreover, the general public is concerned with contribution which makes towards social enlistment which is exhibit to the environment in which the business is loaded and its willingness to contribute to the development of the environment.

The activities of the public enterprises have been on the increase in recent times which necessitated the introduction of the accounting practice to check and monitor the financial activities of these enterprises. Bimage (2005) posited that accounting is defined as a process by which data relating to the economic activities of an organization are measured recorded and communicated to interested parties for analysis and interpretation. Bimage (2005) continued that the earliest methods of accounting records were kept in physical quantities. These records came from the Eastern (early) civilization which involved in the countries around the Mediterranean Sea such as Mesopotamia, Egypt, Crete, Italy etc. Money was recorded as soon as money took the place of barter as a medium of exchange and unit of accounting practice has been closely related to the economic development of the country. If the business organizations grows in size and complexity management and outsiders groups which include owners of the firm (stock holder) creditor, government, employer and the general public (Kanu, 2012).

The differentiation necessitated the need to have accounting department in the enterprises to give accurate financial of the management and to satisfy the outside demands or the general public who are already interest on whether the enterprises in growing or not. The role of accounting in public enterprises in Nigeria is primarily to ensure accurate accountability in these sectors and present the time and fair financial position of the enterprises (Kanu, 2012). The role is of utmost importance in any organization. An organization can only grow or profit when the resources can only be well managed if accounting department of the organization give accurate financial information to know how much the enterprises having. It only when this is done that the firm allocate its resources and knows what is to be done. The role of accounting seems to be more pounced in the public enterprises. In recent times, there are cases of misappropriation of funds in the public enterprises and improper accountability (Ostisumi, 2014). These factors as indicated by Ostisumi (2014) have led to a lot of public enterprises go into oblivion, if the government has reorganization the role of accounting, all these feeble should not have risen. No enterprises can more forward without having a well-organized financial department to give accurate financial, information about the firm. This is because if improper accounting records are not minimized or where possible eradicated these is bound to be cases of public enterprises failure. Consequently, staff of such enterprises will force out of their job. This will result to economic and social activities in the society (Kanu, 2012).

1.2 Statement of the Problem

Obviously, every privates and public entries in Nigeria has their accounting department and there are increase cases of financial mismanagement in virtually all the public and private organization in Nigeria. However, in the case of Nigeria, there are more cases of accounting mismanagement in public enterprise than most other countries in the world. The management of public enterprise in Nigeria has been very poor. A quick survey into public enterprises will show that with ease. The problem of this study lies on how the managers of these enterprises are able to recognizes the role of accounting in their enterprises so that these cases of improper accountability will be minimized or if possible its total eradication in our society.

1.3 Research Questions

Based on the above stated problem, the following questions were raised;

i. To what extent has accounting records controlled the effect of expenditures in public enterprise?

ii. What are the factors that prevent the accounting department from carrying out their functions as expected?

iii. What are the government policies which promote accountability in public enterprises in Nigeria?

1.4 Objectives of the Study

The broad objective of the study is to examine the role of accounting in the control of public expenditure. In order to achieve this broad objective, the following specific objectives were raised;

i. To determine the extent to which accounting records has controlled the effect of expenditures in public enterprises.

ii. To find out factor that prevents the accounting department from carrying out their function as expected.

iii. To determine government policies which promote accountability in public enterprises in Nigeria.

1.5 Hypotheses of the Study

Based on the research questions and objectives above, the following hypotheses were formulated.

Ho1: Good accounting records have no significant effect on the control of public expenditure

Ho2: There are no factors that prevents the accounting department from carrying out their functions

Ho3: There are no government policies that promote accountability in public enterprise in Nigeria.

1.6 Justification for the Study

Numerous researches have been carried out similar to this subject such as Kanu (2012), Ostisumi (2014) amongst many others. This study set out to examine the role of accounting in the public sector in this country, Nigeria in which the study set to distinct itself by highlighting the inherent problem encountered in the account department of most organizations. It is expected that this work will be of interest to the owners of business enterprises, the government, students and the general public. To shareholders, owners of enterprise, interested persons and the government, this study is expected to kindle their interest the more and they will take note of various recommendations mentioned here and help steer the management team towards forming a study organizations to present an accurate financial information of their firm. This study will also help to serve as literature to individual or corporate bodies into want to carry on further research on the role of accounting in the public sector in Nigeria.

1.7 Scope of the Study

Due to financial constraints, time and mostly academic workload, this research will not be able to cover the entirety of public enterprises in the country but will limit its scope to the axis of the researcher’s location, Kwara State. The study will also constrain itself by only examining the state of the public enterprises and expenditures within the years 2011 to 2015.

1.8 Plan of the Study

To ensure orderliness of the study, the plan of the study was carried out and reported chronologically, in five chapters. Chapter one which is the introduction to the study provided the background to the study, statement of the problem, research questions, justification for the study, objectives of the study, hypothesis of the study, scope of the study, definition and terms and plan of the study. The second chapter contained the review of relevant literatures while the research methodology is presented in the third chapter and it included the research design, population of the study, sampling techniques, method of data collection and methods of data analysis. The fourth chapter contained the data presentation analysis and discussion of result obtained from the field survey. Chapter five covers the summary, conclusions and recommendations.

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BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08068231953 or 08168759420

AFFILIATE LINKS: