TABLE OF CONTENTS
D ECLA.RA TIO N: ················································ ·--·-·····-··-············ ·········· ·········· i'i
APPROVAL ·····························- ········-···-····-······-----.... --·--··························iii
DEDICATION: ······································-········ ································· ···················· iv
ACKN"OWLEDG-E.MENT -··--····-··-··- ··--·-····-············································· ········· v
TABLE 0 F CO NTE.NTS ············-············-······--·--········································ · ··vi
LIST OF ABBRE"VIA TIONS: ·-···········-····-·--·------·-······-···························viii
LIST OF ABBRE"VIA TIONS: ··········-·······-···················································· ·· ·viii
ABSTRACT: ................................................................................................................ ix
CHAPTER ONE ........................................................................................................... 1
1. 0 General Introduction: ....................................................................................... 1
1.1 Background to the study: ............................................................. .................... 2
1.2 Purpose of the study: ...................................................................... ................. 3
1.3 Objectives of the study: ................................................................................... 3
1.4 problem statement ................ .............. ....... ... .. ......... ..... ...... ........ ... 4
1. 5 Research questions: ......................................................................................... 4
1. 6 Scope of the study ......................................................................................... ... 4
Theoretical framework . ............................................................................................... 5
1. 7 Justification of the study .................................................... ... ........................... 5
CHAPTER TW 0: ......................................................................................................... 8
2.0 LITERATIJRE REVIEW ................................................................................ 8
2.1 Introduction: .................................................................................................... 8
2.2 Accounting Information System: ........................................................... ........ .. 8
2.3 Entrepreneurs: ............................................................................... .................. 8
2.4 Small businesses: ............................................................................................. 9
2.5 Financial Reporting: ............................................................................ .......... 10
CHAPTER THREE .................................................................................................... 1 7
3.0 ME1HODOLOGY ........................................................................................ 17
3.1 Introduction ................................................................................................... 17
3.2 Research Design ............................................................................................ 17
3.3 Sample Size .................................................................................................. . 17
3.4 Data Source ................................................................................................... 17
3. 5 Data collection methods and instruments/tools ............................................... 17
3.6 Time frame ................................................................................ ........ ............ 18
3. 7 Limitations ofthe study ................................................................................. 19
CHAPTER FOUR ......................... ·- -·---·-- -------·-·--···························· 20
4.1 Background characteristics of the respondents (Demographic responses) ... ... 20
Table 1 A table showing the sex of resJIOndents ........................................................ 20
4.2 The level and value of Accounting Information system .................................. 23
4.2.1 Use of Accounting Information System .................................................. 23
4.3 Extent of Accounting Information System on performance and business
operations .................................................................................................................. 23
4.4 Types of :financial reports prepared ................................................................ 24
VI
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__ --------.....__ ___ --_----- --· --- _-__-_:::.._-- -=--=------=- ':..:-:..:.~-=-=.-- _:_:-~----:-_:=_:::.:.__:.:_-:-_~--=
4.4.1 Analysis ofthe quality of financial reports and clarity of reports ............ 26
4. 5 Impact of Accounting Information System and financial reports on performance. 26
4.5.1 Impact on planning business operations ........................................... ....... 27
4.5.2 Measure ofperformance ......................................................................... 28
4.6 Suggestions on how to improve accounting information system in small ....... 29
scale entrepreneur ............................................................................................. ......... 29
CHA.P'fER FIVE ................... ·-·················································································· 31
5. 0 Introduction ................................................................................................. .. 31
5.1 Summary ....................................................................................................... 31
5.2 Conclusion ................................................................................... ...... ...... ...... 32
5.3 Recommendations ......................................................................................... 33
5. 4 Areas for further research ............................................................................... 34
TE'RMIN"OLOG"'ES ···············-··-··········· ·························-········································ 35
REFERENCES: ············-·····-······-·-······ ·········· ·············· ··········································· 36
APPENDIX. 1 .......................................•....................... ·-············································ 37
APPENDIX. 0: ....................................... ·-···········-···· ····--·····-······-··························· 37
APPENDIX. IT ........................•••.......•.....................•.•..•..•...................•......................... 38
ABSTRACT: Accounting information system is the portion of information system concerned with the measurement and prediction of income, weal~ and other economic events of the organisation and its subparts and entities for example order processing, general ledger, payroll, Accounts payable and Accounts receivable. Accounting information system in small scale entrepreneurs in K.ikuubo has not been given the first priority in the operation of businesses. Suggestions and proposals have come as to why and how accounting infonnation system affects the performance of small scale entrepreneurs. Account Information System records and reports business transactions and other economic activities/events as it is based on the double entry bookkeeping concept. For that matter, the study will look deeply on the financial reporting in small scale entrepreneurs. The study intended to establish how business transactions are recorded, the nature of financial reports prepared, effect of Accounting Information System and how they are related the performance of small scale entrepreneurs/businesses along Kikuubo trading centre. The study intended also to reveal the quality of reporting by small scale entrepreneurs as a result of the availability of Accounting Software packages and the relationship of several Accounting Information Systems commonly used. Questionnaire was used as the basic research tool and sampling as the method used in Research. The study involved field research, library research and document analysis.
