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THE USEFULNESS OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF COMPANIES AND IN GUIDING INVESTMENT DECISIONS

ABSTRACT

The use of financial statement in any business organization cannot be over emphasized, financial statements are needed by variety of people for different purposes.

For instance, the government needs the financial books (reports) of a company for taxation purposes, the investors want to know how profitable a company is and will be able if the management of the company will like to know the level of their performance, all these cannot be known without the analysis of financial statement of the company or companies involved.

The research work therefore forecast on the usefulness of financial statements in assessing the performance of companies and guiding investment decisions, in order to provide investors, management, government and others what the company is worth.

Finally, the sources of data which are, primary and secondary data which led to the discussion of findings, conclusions and recommendation of the research topic.

TABLE OF CONTENTS

Title page

Approval page

Dedication

Acknowledgement

Table of contents

Abstract

List of tables/charts

CHAPTER ONE:  INTRODUCTION

1.1    Background of the study

1.2    Statement of the problem

1.3    Objectives of the study

1.4    Significance of the study

1.5    Scope and limitation of the study

1.6    Research Questions

1.7    Statement of Hypothesis

1.8    Definition of terms

CHAPTER TWO:  REVIEW OF RELATED LITERATURE

2.1    Basic concepts

2.2    Points of sales

2.3    Development of generally accepted accounting principles

2.4    Profile of the company

2.5    Analysis of trading accounts of marketing department of the company

2.6    Analysis of profit and loss account of the company

2.7    The fund flow statement

2.8    Profit and Loss Appropriation Account

2.9    Interpretation of Final Accounts of the company.

2.10    Evaluation of items with ratios.

2.11    Auditors report and information.

CHAPTER THREE:  RESEARCH DESIGN AND METHODOLOGY

3.1    Sources of Data

3.2    Interview questions

3.3    Sample Design

3.4    Method of Investigation

3.5    Statistical method used for data analysis.

CHAPTER FOUR:

4.0    Presentation, Analysis and Interpretation of data

4.1    Data presentation

4.2    Data Analysis

4.3    Testing of Hypothesis

4.4    Data interpretation

CHAPTER FIVE:  FINDINGS, CONCLUSION AND RECOMMENDATION

5.1    Discussion of findings

5.2    Conclusion

5.3    Recommendation

Bibliography

Appendix A:  Questionnaire

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