Published Financial Statements: Users and Their Need for Accounting Information

6104 Words Dec 3rd, 2012 25 Pages
C H A P T E R O N E
INTRODUCTION

1.1 BACKGROUND OF THE STUDY Accounting as a profession or discipline, has always been seen as an information-generating one, which fittingly makes the job of the Accountant to be that of observing economic activities, recording the observations in the prescribed books, analysing the recordings, interpreting his analysis and preparing reports to all users of Accounting Information. The prepared reports are generally referred to as financial statements, which clearly outline or identify the areas of strengths and weaknesses of a business organisation. Various interest groups use the generated Accounting Information in the financial statements as input or guide towards the making of effective decisions
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To establish measures aimed at improving the quality of Accounting Information; and vi. To find out ways of safeguarding and enhancing the integrity of Accounting Information.

1.4 HYPOTHESES OF THE STUDY The following hypotheses will be tested by the researcher.

1.4.1 HYPOTHESIS I
Null Hypothesis (H0): Users of Accounting Information do not rely on published financial statements for effective decision-making.
Alternative Hypothesis (H1): Users of Accounting Information rely on published financial statements for effective decision-making.

1.4.2 HYPOTHESIS II
Null Hypothesis (H0): Users of Accounting Information do not highly consider published financial statements as indispensable if they must make effective financial decision(s).
Alternative Hypothesis (H1): Users of Accounting Information do highly consider published financial statements as indispensable if they must make effective financial decision(s).

1.4.3 HYPOTHESIS III
Null Hypothesis (H0): Users of Accounting Information do not usually analyse published financial statements to arrive at information for their own need(s).
Alternative Hypothesis (H1): Users of Accounting Information do usually analyse published financial statements to arrive at information for their own need(s).

1.5 SIGNIFICANCE AND RELEVANCE OF THE STUDY Accounting has always been widely acknowledged as information generating discipline or profession; different stakeholders use the

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