TABLE OF CONTENTS

DECLARATION ....................................................................................................................... i

APPROVAL ............................................................................................................................. ii

DEDICATION ......................................................................................................................... iii

ACKNOWLEDMENT ............................................................................................................ iv

LIST OF TABLES ................................................................................................................. viii

LIST OF FIGURES ................................................................................................................. ix

LIST OF ACRONYMES .......................................................................................................... x

ABSTRACT ............................................................................................................................. xi

CHAPTER ONE ..................................................................................................................... I

INTRODUCTION ................................................................................................................... I

1.0 Introduction ......................................................................................................................... I

1.1 Background of the study ...................................................................................................... I

1.1.1 Historical back ground perspective .................................................................................. I

1.1.2 Theoretical Perspectives .................................................................................................. I

1.1.3 Conceptual Perspective .................................................................................................... 3

1.1.4 Contextual perspective ..................................................................................................... 4

1.3 Purpose of the study ............................................................................................................ 5

1.5 Research Questions ............................................................................................................. 6

1.6 Hypothesis ........................................................................................................................... 6

1.7 scope of the study ................................................................................................................ 6

1.7.1 Geographical scope .......................................................................................................... 6

1.7.2 Time Scope ..................................................................................................................... 7

1.8 Significance of the study ..................................................................................................... 7

1.9 The conceptual framework ................................................................................................. 7

CHAPTER TWO .................................................................................................................... 9

V

LITERATURE REVIEW ...................................................................................................... 9

2.0 Introduction ......................................................................................................................... 9

2.1 Theoretical review .............................................................................................................. 9

2. I .1 The conceptual review ................................................................................................... 1 O

2.2 Nature of record keeping and financial performance of small and medium enterprises .. 10

2.2.1 purpose of record keeping .............................................................................................. 12

2.3 Types of records kept in small and medium enterprises ................................................... 12

2.4 Factors affecting record keeping and fit,ancial performance ............................................ 13

2.4.1 Objective of record keeping to financial performance of SMEs ................................... 15

2.5 Attitude and satisfaction financial performance customer. ............................................... 16

2.5.1 Accounting records kept and performance .................................................................... 17

2.6 Relationship between record keeping and financial performance of small scale business

enterprises ............................................................................................................................... 18

CHAPTER THREE .............................................................................................................. 19

RESEARCH METHODOLOGY ........................................................................................ 19

3.0 Introduction ....................................................................................................................... 19

3. I Research design ................................................................................................................ 19

3.2 Population of the study ..................................................................................................... 19

3.5 Data sources ...................................................................................................................... 21

3.5.1 Secondary data collection .............................................................................................. 21

3.5.2 Primary data collection .................................................................................................. 21

3.6 Research instruments ........................................................................................................ 22

3.6.1 Questionnaires ................................................................................................................ 22

3.6.2 Interviews ....................................................................................................................... 22

3.6.3 Observations .................................................................................................................. 22

3.7 Measurement of variables ................................................................................................. 22

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3.7.1 Validity and Reliability .................................................................................................. 22

3.8 Data collection procedures ................................................................................................ 23

3.8.1 Data analysis .................................................................................................................. 23

3.9 Ethical consideration ......................................................................................................... 24

3.10 Limitation of the study .................................................................................................... 24

CHAPTER FOUR ................................................................................................................. 25

PRESENTATION AND ANALYSIS OF RESEACH FINDINGS ................................... 25

4.0 Introduction ....................................................................................................................... 25

4.1 Analysis of the response rate and descriptive statistics .................................................... 25

4.2 Accuracy to financial performance of small and medium scale enterprises ..................... 28

4.3 Comparison of financial performance of small scale and medium business enterprises .. 30

4.4 Challenges faced by small and medium scale enterprises in Record keeping ................. 32

4.5 Detection of errors and fraud to financial performance of small scale and medium

business enterprise .................................................................................................................. 33

CHAPTER FIVE .................................................................................................................. 38

SUMMARY, CONCLUSION AND RECOMMENDATIONS ........................................ 38

5.0 Introduction ....................................................................................................................... 38

5.1 summaries ......................................................................................................................... 38

5.2 Accuracy of financial performance to small and medium scale enterprises ..................... 38

5.2.1 Comparisons of financial performance to small and medium scale enterprises ............ 38

5.2.3 Detection of errors and fraud of financial performance and small scale enterprises ..... 39

5.3 conclusions on each objective ........................................................................................... 39

5.4 Recommendations ............................................................................................................ 41

5.5 Suggestion for fu11her studies ........................................................................................... 42

REFFERENCES ................................................................................................................... 43

APPENDICES ....................................................................................................................... 45