THE ROLES OF ACCOUNTING IN ECONOMIC GROWTH AND DEVELOPMENT (CASE STUDY OF MINISTRY OF ECONOMIC DEVELOPMENT AKWA IBOM STATE)

CHAPTER ONE

1.1 Background of the Study

The concept of how much and how many cannot be nipped in the bud as it has many metamorphosed into what we known as book keeping and accounting. According to Batho(2015) Accounting is the process of providing information regarding primarily, the financial activities of economic entities so that the users of this information may make decision about the entities. Accounting was once define as what accountant do. This definition today is still useful through narrow. Accounting according to Littleton (1953) is the central purpose of matching possible periodic costs (efforts) and revenue (accomplishment). (1966) states that accounting is the process of identifying, measuring and communicating economic information to permit informed judgement and decision by users of the information. We can also say the accounting is the process of recording, classifying and summarizing of financial transactions or event in terms of money and reporting result to the management and other users of accounting information. According to Ifiok Abasi E. (2009) the users of accounting information is grouped into two and summarized into External and Internal Users. The internal users include managers, Employees, internal Auditors while the External users include Creditors, Debtors, Board of Directors, External Auditors, Government, Tax payers and customers, they need these accounting information for various purposes. Accounting has existed a long ago, it is as old as human haven’t began about 400 BC during the early civilization in some cities like Babylon, Samaria and Assyria. This was made possible by the merchants who traded in many items and commodities and had their record done primitively on Tablets, Stones, marking on the wall.

1.2 Statement of the Problem

The present day government of Nigeria is trying by all means to stop corruption in public places. This corruption range from financial misappropriation of public funds, embezzlement, improper recording of financial and non-financial statement etc. hence, this study will aid in informing and enlightening on the need for proper keeping of accounting records.

1.3 Objectives of the Study

The board objective of this study is to ascertain the role of accounting in economic growth and development of Nigeria, while the specific objectives of this study are as follows;

i To ascertain the impact of proper accounting records keeping on economic growth and development.

ii To ascertain the impact of accounting information on decision making

iii To ascertain the impact of accounting information on economic sustenance.

1.4 Research Question

i Does proper accounting record keepings have any impact on economic growth and development?

ii Does Accounting information help in decision making? iii Does accounting information have any impact on Economic Sustenance?

1.5 Research Hypothesis

The Null hypotheses (H ) of the study are as follows:

H : Proper accounting record keeping does not have any impact on economic growth and development.

H : Accounting information does not have any impact in decision making.

H : Accounting information does not have any impact in Economic Sustenance.

Similarly; The Alternative hypotheses (H ) of the study are as follows;

H : Proper accounting record keeping helps in economic growth and development.

H : Accounting information has an impact in decision making.

H : Accounting information helps an impact in Economic Sustenance.

1.6 Significance of the Study

Decision making: this will help in effective decision making which in turns will bring growth and development to the economic. This study will aid in widening the researchers knowledge and also gives the researcher the Zeal to carry out more research. This research work will serve as a reference to other researchers on this field.

1.7 Scope / Limitation of the Study

This study was carried out at Ministry of Economic Development, Akwa Ibom in order to fully assess how accounting help in economic growth and development in Nigeria.

It is anticipated that this study will have the following Limitations:

a. That some of the questionnaire may be lost in transit and as such affecting the result of the research.

b. That some of the responses given may not be accurate.

c. That the respondents may not be able to provide all the information needed by the researcher due to ignorance.

d. That the researcher may not have enough funds and sufficient time to gathers sufficient data.