CASH BUDGETING AS A BASIS FOR DECISION MAKING

(A CASE STUDY OF AGUATA LOCAL GOVERNMENT AREA)

By

Author

Presented To

Department of Accounting

ABSTRACT

The research project was on cash budgeting as a basis for decision making (A case study of Aguata Local Government Area).

The whole work has been divided into five chapters.

Chapter one, Introduces the project

Chapter two, talks on literature review

Chapter three takes care of the methodology

Chapter four is about data analysis and

Chapter five is about summary, conclusion and recommendation.

In carrying out this project the researcher applied two pronged approaches to sounding of data.

The two approaches were the primary and secondary source of data collection.

In case of the primary approach researcher developed a list of questionnaire which she distributed to respondents. The second data collection utilized library research, textbooks, journals and unpublished lecturers. The questionnaire is attached as an appendix on the end of the work.

The data were analysed in form of hypothesis by using chi-square form of analysis the researcher found out that some project were started and abandoned half way while some other establishments adhere strictly to their cash budgets.

In her conclusion, the researcher said that cash budgeting is an important management tool both in public and private sectors.

Finally, the researcher recommended that orientations programme should be organised for new staff, that modern accounting equipments should be bought and put in use, that monthly cash budget should be introduced to take care of fluctuations in the economy and that management should install effective financial rewards as motivation towards meeting the organisations budget objectives.

PROPOSALS

In management audit they attempted to aid the management of the organisation by providing it with information and analysis useful in the process of control.

Management audit can also be significant in financial accounting area.

For many year now, stockholders, potential investors and other interested parties have been concerned with the annual reports of major co-operations and the attached letter from the president of the corporation.

Accountants have been attempting to deal with this problem for some years now and many proposals have been presented to which management audit is the one that I think that has the greatest potential for the future. For both internal and external reporting purposes.

Who are capable for appraising performance both for accounting data and management analysis. If this appraisal were made and an opinion rendered, the management audit would be of significant benefit to internal and external parties alike.

The purpose of the audit is being the attestation of management’s representations of an independent examiner. By attestation I refer tot he reliability of management statements regarding its own decisions as proven by an independent third party.

The auditor’s financial statement examines the performance of the company accountable tot he stockholders for its decision.

Also management audit is a way of evaluating the performance of management in regard tot he decisions made, the efficiency of its operating and the attainment of corporate goals.

To this date, there has been little empirical research to determine the potential value of the management audit to users of the willingness of management audit process.

However, the management audit concepts it carefully designed could prove to be a most important development in the management appraisal field. With a view to improving management efficiency.

This research is intended to investigate the extend to which management auditing is applied by organization in Nigeria.

For example it is utilized by organisation as a tool of improving management efficiency made.

This research involves, library work, periodicals and consulted published professional journals.

TABLE OF CONTENT

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWLEDGEMENT

ABSTRACT

TABLE OF CONTENT

CHAPTER ONE

1.1 INTRODUCTION`

1.2 STATEMENT OF PROBLEM

1.3 PURPOSE OF STUDY

1.4 SIGNIFICANCE OF STUDY

1.5 SCOPE AND LIMITATION

1.6 FORMATION OF HYPOTHESIS

1.7 DEFINITION OF TERMS

BRIEF HISTORY OF AGUATA LOCAL GOVERNMENT AREA

REFERENCE

CHAPTER TWO

2.1 REVIEW OF RELATED LITERATURE

2.2 BUDGETING AS A DECISION-MAKING TOOL

2.3 BENEFITS/ADVANTAGES OF CASH BUDGETING

2.4 PREPARATION OF CASH BUDGET

2.5 FUNCTIONS OF THE BUDGET COMMITTEE

2.6 STAGES OF CASH BUDGET PREPARATION

2.7 GUIDELINE FOR CASH BUDGET PREPARATION

2.8 OBJECTIVE OF CASH BUDGETING

2.9 ESSENTIAL OF BUDGETING

REFERENCE

CHAPTER THREE

3.1 RESEARCH DESIGN

3.2 SAMPLE SIZE

3.3 METHOD OF DATA COLLECTION

3.4 METHOD OF DATA ANALYSIS TOOL

3.5 DECISION RULE CHI-SQUARE

REFERENCE

CHAPTER FOUR

4.1 PRESENTATION AND ANALYSIS OF DATA

CHAPTER FIVE

5.1 SUMMARY

5.2 FINDING

5.3 RECOMMENDATION

5.4 CONCLUSION

BIBLIOGRAPHY

QUESTIONNAIRE