1 5 Hypotheses
1. The use of accounting ratios guides management as an
effective tool in decision making;
2. The result of using accounting ratios relies on the
effectiveness of accounting and how accountants are skilled in financial
analysis techniques.
1 6 Significance of the study
This study is of importance to the researcher as it equips him
the knowledge of financial analysis techniques and interpretation of the
available data for managerial purpose using accounting ratios. I t further
helps in designating proper solution for identified problems.
The research enable managers to understand better the role
that plays accounting ratios in decision making and it will attempt to make a
causative analysis and designed the possible alternative for improvement of
managerial decisions for growth of AMAZI YA HUYE, these would thus become a
basis for further research and provide the necessary information for action by
the concerned parties. Finally, this study will enable the researcher to obtain
a Bachelor' degree in Accounting Sciences.
1 7 Scope of the study
The study will make a great emphasis on analysis of financial
reports of AMAZI YA HUYE using accounting ratios. This report is made of all
balance sheets, income statements over the last 5 years period, that from 2003
to 2007.
1 8 Organization of the study
The study is divided into five chapters. The first chap
ter will be made up of introduction, background of the study, statement of
the problem, research questions, and objectives of the study, hypothesis,
methodology, and significance of the study, scope of the study and organization
of the study.
with the research topic will be defined ,the accent will be put
on the impact of using accounting ratios for decision making.
The third chapter will identify methodology to follow
while conducting this research.
Chapter four will focus on the research findings
analysis and interpenetration of data collected. Findings will be linked with
objectives set.
Chapter five will present summary of research findings,
conclusion and recommendations.
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