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Full Project-THE OBJECTIVE OF FINANCIAL STATEMENT AND THEIR USEFULNESS TO THE GENERAL USER GROUPS

Full Project-THE OBJECTIVE OF FINANCIAL STATEMENT AND THEIR USEFULNESS TO THE GENERAL USER GROUPS

MBA MSc BSc Thesis/Dissertation Project Topics
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Full Project-THE OBJECTIVE OF FINANCIAL STATEMENT AND THEIR USEFULNESS TO THE GENERAL USER GROUPS

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CHAPTER ONE

INTRODUCTION

1.1  Background of the Study

Each person like every business requires some measures of both financial position and financial performance in assessing his financial conditions. The financial position depicts one’s wealth at ascertain point in time while one’s financial performance describes once. Financial statements according to Illoumezie (2006:33) are like compasses “which navigators use to locate their bearing and find direction”. People use them to gauge their financial positions at various points in their lives in order to judge their progress towards their financial goals.

Financial statements according to meigs and meigs (1981:28) refers to reports which summarize the financial position and operating results of a business (balance sheet and income statements). It referred to as general purpose that satisfy the need of many groups generally called stakeholders. These groups are particularly concerned with the risk inherent in and returns provided by their investments, and who require accounting information to enable them assess the ability whether they should buy, hold and sell their investments. According to Anayaogu (2002:14) financial accounting provides information to eternal decision makes such as shareholders government, creditors, employees etc, these are people with whom or from whom money is ultimately paid or received.

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