Role Of Financial Statements In Investment Decisions

Approval page ii
Dedication iii
Acknowledgement iv
Abstract vi

CHAPTER ONE:
INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problems 3
1.3 Objective of the Study 4
1.4 Research Questions 5
1.5 Hypotheses of the Study 5
1.6 Significance of the Study 6
1.7 Scope and Limitation of the Study 6
1.8 Definition of terms 7
References 9

CHAPTER TWO:
REVIEW OF RELATED LITERATURE
2.0 INTRODUCTION 10
2.1 Historical Development of Business Financial State Analysis
and Financial Ratios 12 2.2 Accounting Information Tools 14
2.2.1 The Balance Sheet 15
2.2.2 The Profit and loss Account (Income Statement) 15
2.2.3 Statement of Accounting Policies 16
2.2.4 Director Report 16
2.2.5 The value Added Statement 17
2.2.6 The five year financial summary 17
2.2.7 The Auditor’s Report 17
2.2.8 Notes on the Accounts 17
2.2.9 A Cash Flow Statement 17
2.3 Quantitative Characteristic of Accounting Information 18
2.4 Use of Accounting Information by decision makers 21
2.5 Objective of Accounting Information 22
2.6 Importance of Accounting Information 24
2.7 Users of Accounting Information and their Objective 25
2.8 Financial Ratio Analysis 27
References 36

CHAPTER THREE:
RESEARCH DESIGN AND METHODOLOGY
3.1 Research Design 37
3.2 Sources of Data 37
3.3 Research Instruments 38
3.4 Reliability / Validity of research Instrument 39
3.5 Population of Study 39
3.6 Sample and Sampling Technique 40
3.7 Administration of Research Instruments 44
3.8 Method of Data Analysis 45
3.9 Decision Criterion for Validation of hypothesis 46
References 47

CHAPTER FOUR:
DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation 48
4.2 Data Analysis 49

CHAPTER FIVE:
SUMMARY OF FINDINGS, CONCLUSION,
RECOMMENDATION
5.1 Summary of Findings 74
5.2 Conclusion 75
5.3 Recommendations 77
Bibliography 79
Appendices 81