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THE IMPACT OF COMPUTER
TECHNOLOGY ON ACCOUNTING
ABSTRACT
Computer can be defined as an electronic device that is
capable of accepting data, processing data and displaying the information. It
can also be regarded as an automatic machine for processing information. The introduction of computer has brought
efficient services to mankind, with people having to do less work. Therefore, it is important for one to become
computer literate so as to be able to fit into the changes brought about by the
computer technology for an improved standard of living with less stress. The high rate of computer illiterates
prompted the researcher to venture into great research work. Though survey, and historical research
methods were used for the collection of primary data, personal observations
were employed in order to enhance the researcher results by limiting the
possible errors.It also enables the researcher to assess population sample
size, attitude of respondents, existing literatures on subject matters. However, personal interview conducted by the
researcher on the personnel manager, heads of the computerization departments
and the union leaders shows that only four employees out of three hundred and
twenty two people were retrenched as a result of introduction of computer to business. Computers have great impact on the profession
of accounting, with the rapid growth of technology there is no doubt that
computers will become a common asset in all profession.
TABLE OF CONTENTS
Chapter one
1.0
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
limitations of the study
1.6 Research
Questions
1.7 Definition of
Terms
Chapter two
2.0 Literature
Review
2.1 Some Applications
of Computer Technology in Nigeria
2.2 Implications
of Technological changes on Employees
2.3 Union Response
to the Technological Changes
2.4 Implication to
Technological change on Employees
2.5 Specific
Implications of computer application to employment
Chapter Three
3.0 Research
Methodology
3.1 Research
Methodology Used
3.2 Description of
Respondents
3.3 Determination
of Sample Size
3.4 Sources of
Data
3.5 Methods of
Investigation
Chapter Four
4.0 Presentation,
Analysis and Interpretation of Data
4.1 Data Analysis
4.2 Testing of
Hypothesis
4.3
Interpretation
Chapter Five
5.0 Summary of
findings, conclusion and recommendation
5.1 Summary of
Findings
5.2
Conclusion
5.3
Recommendations
Bibliography
Appendix
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE
STUDY
Days are gone when most accounting operations and decisions
that have to be made on or from them are on first hand basis. This is because
accounting operators and decision makers are in close contact with such
accounting operations and as such, collected, analysed and interpreted data
from such operations for decision making.
With the introduction of computer to many business applications, those
business areas that involve repeated tasks which are often monotonous and
fallible to human errors (cash, inventory control, payroll and etc) are
increasingly being simplified accurately by combining the cost, effectiveness,
simplicity of use, efficiency, reliability and accuracy of the computer to
obtain, analyze and interpret data information for efficient business
decisions. Though the introduction of computer to many facets of business
operations is a welcome idea, its use is further implicated on accounting
system and as such organisations need to strike a balance between accounting
areas to be manually operated so as to control or limit the menace associated
with unemployment.
Some of the business operations to which computer has been
successfully introduced:
-
Printing graphic designs of complicated nature.
-
Payroll system.
-
Billing system.
-
Predict election result.
-
Mark examination results such as JAMB and WAEC.
-
Control inventories.
-
Predict performance of an aircraft or missile still.
-
To calculate the critical path of most efficient assignment of troops or
problems and so on.
It therefore becomes important that technological changes
such as the introduction of computers in organizations be carefully evaluated
so that the gains in technical efficiency are not made at the expense of the
well-being and integration of employees.
In the circumstances,
then a study of the implication of computer introduction to accounting system
of business operations is not only timely but mandatory so as to avoid some of
the problems associated with technological changes in organizations.
Historical Development of Computer
Nature has endowed man with the spirit of inquisitive that is
searching to know about certain phenomenon surrounds him and his environment.
One of the major problems is of counting.
Trying to solve this problems, man invented the use of what is refined
today as computer.
For clear understanding we are going to divide it into two
basic forms.
1. Early Aids
to counting
2. The Fingers
and toes
The early man uses its fingers and toes in trying to solve
basic mathematical problem of adding, subtracting and dividing etc facing him
with it environment.
B. Stones
The primitive man also uses piles of stone in replacement of
finger and toes application in trying to solve problems of accounting. This man
gathered stones of various colours and small sizes in trying to solve basic mathematical problems.
c. Abacus
A man called Abacus invented a manual machines or device for
mathematical solution known as Abacus. This manual machine was made in a
rectangle structure which was attach with a strings of wires on the bead. Now
by moving the bead back and front along the wires, numbers could be added and
subtracted.
2. Modern Mechanical
Aid to Counting
In not less than hundreds of years manually application was
involved, until the modern scientist came up with a new device known as
calculator.
A French man known as Blaise Pascal invented the first
mechanical machine which could support addition and subtraction, division etc
in the year 1642. The machine has a number of wheels with the teeth on tens,
the third works with hundreds, and so on.
For clear understanding of this machine note that any time the first
wheel made one complete turn, the second wheel moved one position forward.
In further attempt of the search for a more reliably means of
computations, a Cambridge university mathematics professor Charles Babbage in
the year 1812 developed what is known as difference engine and it application
was greater in mathematical tables.
This therefore mark a significance change to our today’s
modern digital computer.
Dr. Herman
Halleraith was American statistician at the United State Census Bereau in 1890,
he developed what was known as Hollerith machines. He used his machine to
process the information obtained in the census of the population carried out in
the United State of America in 1890. In the year 1946 John Von Neuman set out
the world classic design for a modern digital computer., all these gave birth to what is now called
modern digital computer.
1.2 STATEMENT OF THE
PROBLEM
The importance of personnel in the accounting section of an
organization cannot be over emphasized especially when one remembers the facts
that these personnel support the organization.
1.3 OBJECTIVES OF THE
STUDY
The purpose of this research work is to find out and evaluate
the implication of computer introduction to Accounting sections of business
operation in Nigeria Today. To find out
whether the introduction of computer has made the accountant job easier. The
study will also attempt to find out the efficiency and effectiveness of such
application to overall management capabilities in decision making.
1.4 SIGNIFICANCE OF
THE STUDY
This research work provides a clear understanding of one of
the social implications of computer application on accounting system. The
information obtained will be useful to management, consultants, about unions,
professional, students, shareholders, investors, institute of higher learning,
training managers, economist, the government and so on.
1.6 RESEARCH QUESTIONS
The following research questions form the basic postulate of
the study:-
1. Has
computer introduction any impact on accounting system?
2. Has
computer introduction made the accountant’s job easier?
3. Has
computer introduction provided more accounting information with same staff?
4. Has computer
introduction made the storing and retrieval of accounting information faster.
5. Has
computer introduction made the accountant more efficient?
1.7 DEFINITION OF
TERMS
The purpose of this section is to give conceptual
clarification of terms within the scope and limitation of the study so as to
avoid ambiguity of concepts used.
Data – Coded
information i.e. information that has
been captured for processing or recorded in any way
E.D.P. – Electronic Data Processing.
Program – A list of instructions which is to be
followed by a computer to solve a given problem.
Input – The process of entering data into computer.
Output – The section of the computer needed to
take result out of computer.
Software – Generic term applied to most non
physical aspects of computing i.e. programs, operating
systems, packages, compilers and to some extent, systems in general.
Computer – A unique, sophisticated magnated
machine which has been carefully put together in such a
careful manner that enables it to manipulate or handle any given task, be it in
Engineering, science, business etc.
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