THE ROLE OF ACCOUNTING INFORMATION ON DECISION MAKING: CASE OF DASHEN BANK SHARE

COMPANY BAHIR DAR BRANCH

A SENIOR ESSAY
SUBMITTED TO
DEPARTEMENT OF
ACCOUNTING AND FINANCE IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR BACHELOR OF ARTS DEGREE IN ACCOUNTING AND
FINANCE.

PREPARED BY:
1. BIAZELK EYAYU_____________________ 0505601
2. GASHAW BIRARA___________________ 0505728
3. GEBRIE NEGA______________________ 0505732
4. GELASA ABDANIE___________________ 0505737
5. GELEBO KARAFO___________________ 0505738

ADVISOR: HONELIGN ESHETIE

DEPARTEMENT OF ACCOUNTING AND FINANCE

COLLEGE OF BUSINESS AND ECONOMICS
BAHIR DAR UNIVERSITY

JUNE 2015
BAHIR DAR, ETHIOPIA
 DECLARATION

We conform that the senior essay, the role of accounting information on

decision making is our original work and is being submitted in partial
fulfillment for the award of the BA Degree in accounting and finance in Bahir
Dar University. This report has not been submitted earlier either to this
university or to any other University for the fulfillment of the requirement of a
course of study.

Name of students Signature Date

1. Blazek Eyayu ____________ ________

2. Gashaw Birara _____________

3. Gebrie Nega _____________

4. Gelasa Abdanie _____________

5. Gelebo Karafo _____________

APPROVED BY ADVISOR:

_________________________ ___________________ __________________

Name Signature Date

ACKNOWLEDGEMENT

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Above all, we would like to thank the Almighty GOD for helping us in our life and the successful
accomplishment of this research paper. We are heartily thankful to our advisor Honelign Eshetie, for his
help by reading each and every item and commenting and advising us still the end in providing
constructive knowledge about our title and generally about research by expending his precious golden
time and energy. We are also indebted to our families for their moral and financial support to doing this
research in our life and to all friends especially kusse Arkale for his support us by giving materials for
doing this paper. Finally our special thanks go to all of those Dashen Bank share company employees
and vice managers, who were very cooperative in providing the necessary data and documents by
sacrificing their time to fill the questionnaire.

ABSTRACT

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This study is designed to assess the role of accounting information on decision
making of Dashen bank Share Company, Bahir dar branch. All data which are
relevant to the study were collected from primary and secondary sources. The
primary data were collected through questionnaire and interview. Secondary
data were collected from the bank’s manual. The data collected through
questionnaire are analyzed by both qualitative and quantitative method of
analysis and presented in table and percentage. The study has also tried to
interpreted each table and eventually. Based on the findings that are obtained
from the analysis it tried to put some conclusion and recommendation. From this
research some findings are observed, the bank has employees who are not qualified in processing and
gathering accounting data that leads the bank failure to achieve the desired goal. So, in order to achieve
the desired goal the bank should hire qualified employee who have concept about accounting
information and giving training to unqualified employees. The accounting information
processed in the bank is not much reliable and relevant; to make it better reliable
and relevant the bank should control and supervise it before processed in the
system.

Table of Contents
ACKNOWLEDGEMENT..................................................................................................................................i
ABSTRACT....................................................................................................................................................ii
Table of Contents........................................................................................................................................iii

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LIST OF TABLES............................................................................................................................................vi
CHAPTER ONE: INTRODUCTION...................................................................................................................1

1.1. Background of the study.................................................................................1

1.2. Statement of the problem...............................................................................2
1.3. Research Question...........................................................................................2
1. How accounting information is processed in Dashen bank?.............................2
1.4. Objective of the study.....................................................................................3
1.5. Significance of the study.................................................................................3
1.6. Scope of the study...........................................................................................4
1.7. Limitation of the study....................................................................................4
1.8. Organization of the paper...............................................................................4
CHAPTER TWO: LITREATURE REVIEW.........................................................................................................5

2.1. Information......................................................................................................5
2.2. What is accounting..........................................................................................6
2.3. Accounting Information...................................................................................6
2.4. The financial Accounting standard board........................................................7
2.4.1. Relevancy...................................................................................................................................7
2.4.2. Reliability...................................................................................................................................7
2.4.3. Conservatism.............................................................................................................................8
2.4.4. Comparability.............................................................................................................................8
2.4.5. Consistency................................................................................................................................8
2.4.6. Neutrality...................................................................................................................................9

2.5. Type of accounting information......................................................................9

2.6. The Nature of accounting information in bank.............................................10
2.7. Accounting system and subsystem................................................................10
2.8. Information system.......................................................................................11
2.9. Accounting information system.....................................................................11
2.9.1. Type of accounting information system...................................................................................12

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 2.10. The accounting information system and accounting cycle.........................13
2.11. Financial Statement and its role in decision making...................................14
2.11.1. Income Statement.................................................................................................................14
2.11.2. Balance sheet statement.......................................................................................................14
2.11.3. Cash flow statements.............................................................................................................15

2.12. Decision Making..........................................................................................16

2.12.1. Decision structure..................................................................................................................16

2.13. Decision Maker: users of accounting information......................................17

2.13.1. Management.........................................................................................................................17
2.13.2. User with a direct financial interest.......................................................................................17
2.13.3. Users with an indirect financial interest.................................................................................18

2.14. How accounting information system can add value...................................18

CHAPTER THREE: METHODOLOGY............................................................................................................20

3.1. Source and type of data................................................................................20

3.2. Method of data collection.............................................................................20
3.3. Sampling design.............................................................................................20
3.4. Method of data analysis and presentation...................................................21
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS...............................................................................22

4.1 personal attribute of the respondent.............................................................22

4.2. Response towards the bank accounting information system.......................25
4.3. Role of current accounting information system for informed decision
making..................................................................................................................28
4.4. The preparation of accounting report in Dashen bank.................................30
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION.........................................................37

5.1. Summary.......................................................................................................37
5.2. Conclusion.....................................................................................................38
5.2. Recommendation..........................................................................................39
Reference..................................................................................................................................................40

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Appendix...................................................................................................................................................41

LIST OF TABLES

Table4.1.1. Respondent sex distribution………………………………………………………………………………………22

Table4.1.2. Age distribution of the respondent……………………………………………………………………………22

Table4.1.3. Educational level of respondents………………………………………………………………………………23

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Table4.1.4. Work experience of respondents………………………………………………………………………………23

Table4.1.5. Position of respondents in the bank………………………………………………………………………….24

Table4.2.1. Type of accounting information processing system the bank uses……………………………25

Table4.2.2.The uses of accounting information for decision making………………………………………….26

Table4.2.3. Adequacy of information for decision making processed in the bank……………………….27

Table 4.2.4 Customer benefited from the bank accounting information system………………………….27

Table4.3.1. The role of information provided by the bank accounting information

system………………………………………………………………………………………………………………………………………….28

Table4.3.2. Reliability of accounting information processed in the bank…………………………………….29

Table4.3.3. Relevancy of accounting information processed in the bank…………………………………….29

Table4.4.1. Preparation of accounting report in the bank……………………………………………………………30

Table4.4.2. How often the bank prepares its report…………………………………………………………………….31

Table4.4.3. Internal financial users of Dashen bank making decision through accounting
report……………………………………………………………………………………………………………………………………………32

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 CHAPTER ONE: INTRODUCTION

1.1. Background of the study

An information system can be defined as a set of interrelated components that
is used to collect or retrieve, process, store and distributed information to
support decision making and control in an organization. In addition to
supporting decision making, the information system also helps managers and
workers to analyze, visualize complex subject and create new product (London,
MIS pp: 6).

Accounting information system is a specialized sub system of information

system whose purpose is to collect; process and report information related the
financial aspect of business event in an integrated information system cannot
be distinguished as a separate subsystem (Gelinas, 2005).

Accounting information collect and process data from transaction and events
organize them in useful forms, and communicate result to decision makers.
These systems are crucial to effective decision making for both internal and
external user. The internal user comprises manager whose requirement is
depend on their level in an organization or on particular function it perform the
external users include stockholder, investor, creditor, government agency,
customer and vendor, competitor, labor union and public at large. These
external users depend on variety of output from organization accounting
information system (Kermit.D.larsen, pp: 318).

Decision making is a process of making choose such what product to sale, in

which market to sale those product, what organizational structure to use and
how to direct and motivate employees (Romney, 2000) so the management
must select a course of action consistent with its objective and make decision
through the effectiveness and efficient form of accounting information (Romany
2000).

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 1.2. Statement of the problem
Information is indispensable for decision making in any business organization.
Accounting information is the most important requirement for making financial
decisions. The decision makers include present and potential investor, lender,
and other users such as manger, suppliers who sell to them and customer who
buy from them. Adequate accounting information plays a great role in decision
making. The major role of accounting information is to minimize risk and
failure by processing adequate financial information to decision makers. To
process correct and adequate accounting information it depends on the
employees of the organization. Those employees are either qualified or
unqualified. Qualified employees are employees of the organization who have
professional skills and enough knowledge to process the accounting data.
Unqualified employees are employees of the organization who have no
professional skill and no enough knowledge to process accounting data. These
employees work through experience and have not the ability to interpret the
financial data to financial users. According to the report of Dashen bank,
annual report some employees are unqualified they generate inaccurate
financial information and so result in failure of the bank to achieve desired
goal. There are cases of manager requesting the role of accounting information
because of their inability to interpret such data there by making the
organization to remain at “Status Quo ante” these problem largely contributed
to failure of role of accounting information in bank with the result that
inaccurate decision are made to the detriment of the bank.

1.3. Research Question

1. How accounting information is processed in Dashen bank?

2. How Dashen Bank use accounting information for decision making process?
3. Does accounting information have any effect on management decision of
Dashen bank?
4. How Dashen bank reduces inadequate accounting information to make
correct decision?

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1.4. Objective of the study
The central objective of this study is to assess the role of accounting
information as an aid to decision making in Dashen bank.

The specific objective of the study is:

1. To assess the type of accounting information system that Dashen bank

uses.
2. To examine the factor that affect adequate accounting information
processing in Dashen bank.
3. To show the relationship between accounting information and decision
making.
4. To identify employees of Dashen bank regarding to process accounting
data.
5. To assess the quality of accounting information in Dashen bank.

1.5. Significance of the study

This study is concerned with the role of accounting information for decision
making. This study tries to provide solution for the problem under
investigation. Investigating the problem is nothing but searching the
appropriate solution for the problem is crucial point. Since this study is focus
on typical organization which is Dashen bank of Ethiopia has the following
significance:

 It helps to increase the researcher experience and ability to do research.

 It gives away for other researcher and recommendation that will be

forwarded eventually indicate major problem that need a great attention.

 Create awareness to financial users about the role of accounting

information to their decision making.

1.6. Scope of the study

The study focuses on the role of accounting information on decision making
only in Dashen bank Bahir Dar branch. The topic includes the qualitative

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characteristics of accounting information, the type of accounting information
system, financial statement and decision making, financial users of accounting
information, the decision making and decision structure and finally how
accounting information system can add value.

1.7. Limitation of the study

The researcher faced certain problems at the time of conducting the study.
Among them:

 At the time of data collection some design respondents were not

presented that elongate data collection period more than the expected.

 There was reluctance on the part of some number of the respondent to

give genuine information when asked.

 The unwillingness of the organization to give full information.

1.8. Organization of the paper

The study was organized in five chapters. Chapter one deals about the
introductions which include background of the study, statement of the
problem, research question, and objective of the study, significance of the
study, limitation of the study and scope of the study. Chapter two discusses
about the literature review followed by chapter three which emphasize the
methodology of the study. Chapter four describes about the data presentation
and analysis and chapter five deals with summary, conclusion and
recommendation part of the study.

CHAPTER TWO: LITREATURE REVIEW

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 2.1. Information
Information is a data or facts that are processed in a meaningful form.
Information is processed data used in decision making (Romney and Steinhart,
2012). There are a number of benefits of information to users. Those are
reducing uncertainty, improve scheduling and improve planning.

The necessary characteristics of information are:

Relevant: the capacity of information to make a difference in decision by

helping users to form prediction about the outcome of past, present and future
event or to confirm or correct prior expectation.

Reliable: the quality of information that assures information is reasonably free

from error and bias and faithfully represents what it purports to represent.

Complete: the inclusion in reported information of everything material that is

necessary for faithful representation of relevant phenomena.

Timely: having information available to decision maker before it loses its

capacity to influence the decision.

Understandable: the quality of information that enables user to perceives its

significances.

Verifiable: the information represents what it purports to represent or that the

chosen method of measurement has been used without error or bias.

Accessible: Available when needed (timely) and in useful format

(understandable) (Romney and Stein, 2012).

2.2. What is accounting

Accounting is a process of identifying, measuring and communicating economic information to permit
informed judgment and decision by user of information (Fees and Warren, 1984).

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Accounting is the art of recording, classifying and summarizing data in significant manner interims of
money, transaction and events which are in part at least financial character, and interpreting the result to
users (Riahi, 2000).

Accounting is a service activity its function is to provide qualitative information primarily financial in
nature about economic entities that is intended to be useful in making economic decision, in making
resolved choice among alternative course of actions (Riahi, 2000).

2.3. Accounting Information

The first step in learning process is to understand how decision are made and how accountant, can
contribute to decision making by using accounting information, when decision involves business and
economic question, accounting information is essential to decision making process.

It involves quantitative information for three functions.

Planning: Is the process of formulating a course of auction it include setting

Goal, finding alternative way of mating the goal, and deciding which

Alternative is the best.

Control: Is the process seeing that plans are carried out. At this points, the

Accountant might be expected to present information that compares actual cost and
revenue with those projects.

Evolution: Is examination of the whole decision to end of improving it. It asks the question was the
original goal satisfactorily met? If answer is no it looks for the reason. Was the problem
in planning or control? Much of the feedback used to evaluate the decision comes from
the financial statement the accountant prepares.

2.4. The financial Accounting standard board

Issued “statement of financial accounting concepts” Number 2 deals with the qualitative characteristics
of accounting information. In this issue the FASB identify usefulness for decision making as the most
important qualitative characteristics of accounting information. To be useful, accounting information
must be understandable to users (decision makers). The qualitative characteristics of accounting
information are:

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2.4.1. Relevancy
It is one of the primary qualities of accounting information that

May make a difference in decision by helping investor, creditor

and other users to evaluate past, present and future event (predictive value) or to
conform of correct expectation (feedback value). Accounting information
generally is not relevant unless timely, that is unless it is available to decision
maker before it become too dated influence the decision. The availability of
computer has enabled accountant to make a great stride in providing timely
information to decisions.

2.4.2. Reliability
Accounting information is reliable if it is reasonably free from
any error and bias that faithfully represent what it purports to
present. To be reliable information, must be verifiable and
must have representational faithfulness or validity. To verify
means to provide something to be true by examination of
evidence of underling fact. If accounting information is free
from bias, the same conclusion would be reached by different
accountant working independently and following the same
measurement techniques.

2.4.3. Conservatism
Although not a qualitative characteristics of accounting information, conservatism
is a concept that may be discussed in connection with reliability. Many accounting
measurement do not have a single “Correct answer” a choice must be made
among alternative assumption under condition of uncertainty.

The concept of conservatism holds that when reasonable

support exist for alternative accounting method and for
different measurement technique, accountant should select the
best method or technique with the least effect on net income
and financial position in current accounting period.

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2.4.4. Comparability
It is a secondary quality of accounting information
comparability of financial statement of business enterprise
from one accounting to the next is essential for favorable and
unfavorable trend. If the financial statement for the current
accounting period show larger earning than the preceding one,
the user assume that operation have been profitable however,
if a material change in accounting principle has occurred the
reported increase in learning could have been caused solely by
accounting change, rather than by an improvement in
underlying business.

2.4.5. Consistency
It is also a secondary quality of accounting information. This principle does not
mean that a particular method of accounting, once adopted should not be
changed. The accounting principle and method change in response to change in
environment of accounting.

2.4.6. Neutrality
It is one of secondary quality of accounting information that absence in reported
information of bias intended to attain a pre determined result or to induce a
particular made of behavior because of many users of general purpose financial
statement free from bias is essential.

There are other qualities of accounting information that are considered as

constraints. Those are:

Cost-benefit consideration: - In recent years, the demand of many users to financial

statement and other financial information have appeared in insatiable to accounts.
There has been an expensive growth in amount of information disclosed in annual
report of publicity owned corporation and cost of producing such information is
substantial.

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 Materiality: Disclosure is necessary in financial statement or in notes to the
financial statement. The meaning of materiality in accounting context is a state of
relative importance, items that are fulfilling in strict accordance with accounting
theory but rather should be handled in most economic matter. Qualitative
standard should be considered in judging the materiality of any time as well as its
dollar amount (Donald E. Keiso, page 37-41, 9th edition).

2.5. Type of accounting information

Financial accounting information: is reported in statements that are
prepared according to generally accepted accounting principle (CAAP). This
statement reports the past result of operation and the financial condition of the
business. They are prepared primarily for the benefit of person or institutions
that are “outside” or external to the organization. These statements are also
useful to senior management in directing the operation of the enterprise.

Management accounting information: include both historical and estimated

data used by management in conducting daily operation, planning future
operation and developing over all business strategies, managerial accounting
report may stress different feature of business from high level strategy to
detailed operation. Similarly, the cost information that management need may
vary depending on the nature of the decision.

2.6. The Nature of accounting information in bank

Accounting information allows the bank to speculate up on the opportunity of

attractive business in placement and resource allocation. By exercising the
main function consecrated by laws, banks generate extremely useful
accounting information for both customer and bank management. The users
of bank accounting information are either internal or external. Internal users
includes bank client and share holder, employee in front offices and bank office
and bank manager whereas, external users includes client business partner,
tax authorities, insurance companies and other banks. The main generating
sources of accounting information in bank activity are client account, bank

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account and bank computerized program (which deals with accounting data,
bank management etc…).

2.7. Accounting system and subsystem

System is a set of interdependent element that accomplish specific objective. A
system must have organization, interrelationship integration, and control
objective. Each part of system is called subsystem (Gelinas, 2005).

2.8. Information system

An information system is manmade system that generally consists of an
integrated set of computer based and manual component establish to collect,
store and manage data and to provide output information to users. (Gelinas,
2005).

Information system is an organized way of collecting, processing managing,

reporting information so that an organization can achieve its objective and
goals. A formal information system has an explicit responsibility to produce
information. In contrast, an informal information system is the one that arises
out of need that is not satisfied by formal channel. It operates without formal
assignment of responsibility (Romney, 2000).

Information system can be manual information system and computerized

based information system. Manual information is in which most of the data
processing load is completed by people without the use of computers whereas,
computerized based information system is in which a computer is used as a
data processor or all equipment programs, data and procedure for performing
asset of related task on a computer ( Romney 2000).

2.9. Accounting information system

Accounting information system is a specialized subsystem of information
system whose purpose is to collect; process and report information related the
financial aspect of business event in an integrated information system cannot
be distinguished as a separate subsystem (Gelinas, 2005). Accounting

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information system produces financial accounting data to external stock
holder, investor, lenders, government and to internal user. (Kaplen and
Krishnan, 1988).

Accounting information system should be accurate and fast while processing

financial information and providing management with the essential accounting
information within reasonable time.

Accounting information system defined as a system of collecting and

processing transaction data and disseminating financial information to
interested parties (Kieso and Weygantt, 2006).

Accounting information system performs three important functions in any

organization.

 It collects and stores data about activities and transaction so that

the organization can review what has happened.

 It process data in to information that is useful for making decision

that enable the management to plan execute and control activities.

 It provides adequate control to safeguard the organization asset

including its data. These control ensure that available when needed
and that it is accurate and reliable (Romney, 2000).

2.9.1. Type of accounting information system

Accounting information system simplifies financial reporting for purpose of
making well informed decisions. They include all the component of the
accounting process: People, procedures, data, software device and security.
The software is a device like a computer and the security is incorporated in the
soft ware. People put together procedure and enter data in to the accounting
software. Types of accounting information system based on environmental
interaction are manual system and integrated IT system (Romney).

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 2.9.1.1. Manual system
In modern time, small order business is the primary users of manual system.
Manual system requires a source document and turn around document you
record entries in general ledger, general journal, special journal and subsidiary
ledger (Romney, 2000).

2.9.1.2. Modern Integrated system

Modern integrated system is windows based and considered much more users
friendly then the other accounting information system. Generally they are cost
less and can be quickly implemented and have fewer bags (Romney, 2000).

2.10. The accounting information system and accounting cycle

An accounting information system is designed to record accurate financial data
in timely and chronological manner, facilitate retrieval of financial data in a
form useful to management and simplify periodic preparation of financial
statement to external users.

An accounting cycle: - is the sequence of accounting procedures used to

record, classify, and summarize accounting information it begins with the
initial recording of business transaction and concludes with the preparation of
financial statement summarizing the effect of these transactions upon the
asset, liability and ownership of the business.

If includes the following eight steps

1. Recording business transaction and event in the journal.

2. Classifying data by posting from the journal to the ledger.
3. Summarizing data from the ledger in an unadjusted trail balance.
4. Adjusting, correcting and updating recorded data; completion of the
worksheet.
5. Summarizing adjusted and corrected worksheet data in the form of
financial statement.
6. Closing the accounting records (nominal or temporary account) to
summarize the operation of the accounting period.
7. Preparation of pre closing trail balance.

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 8. Reversing certain adjusting entries to facilitate the recording process in
the subsequent accounting periods (Larson Kermit D page55-65).

2.11. Financial Statement and its role in decision making

Financial statement is the accounting report that provides the accounting
information to the users. An organization often provides accounting
information to managers and other decision makers in its financial statement.

The statements are useful because they describe the organizations financial
health and performance in a conducted and highly informative format because
they provide an overall view of the entire organization through accounting
information. Some of the financial statements used by users to make decision
are:

2.11.1. Income Statement

Is useful because it show whether the business earned a profit (also called net
income). A company earns net income if its revenue exceeds its expense. A
company incurs net loss if its expense exceeds its revenue, so manager
consider all these to make appropriate decision.

Revenue: - are inflows of assets received in exchange for goods or service

provided to customers as parts of the major or central operation of business.
Revenue also may occur as decrease liabilities.

Expense: - are out flow or using of assets as a result of the major or central
operations of business it may occur as increase in liabilities.

2.11.2. Balance sheet statement

Its purpose is to provide information that helps users understand a company
financial status as a result the balance sheet is often called “statement of
financial position”. The balance sheet describes the financial position by listing
the type and donor amount of assets, liability and equity of the business.

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Asset: - are properties or economic resources owned by the business.

Liability: - is liability of the business that is paid through the business assets.

Equity: - is a residual interest in asset of an entity that remains after

deducting its liability.

For example: - creditor often use to help them decide wither to a loan
money to a business. They can use balance sheet to
compare the amount of existing liability and assets. A loan
is less risk if the liabilities are small in compassion to assets.
On the other hand a loan is more risky if the liability is
larger than the assets. The risk is greater because it is more
risky that the asset cannot be sold for enough cash to pay all
the debts.

2.11.3. Cash flow statements

Cash is the life blood of business enterprise. With cash loan can be prepaid and owner can receive
dividends. In a simple term a business must have an adequate amount of cash to operate the business.
Information about the event and transaction that affect the cash position of a company is reported in the
financial statement called “statement of cash flow”. Information about cash flow can influence decision
makers in many ways. For example, investor will value the company higher than if property and
equipment must be sold to financial operations. Information about cash flow can help creditor to decide
whether a company will have enough cash to pay its existing debt as they mature. Cash flow information
is used by decision makers outside as well as inside the firm to evaluate a company ability to make
advantage of new business opportunity that may arise. Manager with in a company use cash flow
information to plan day to day operating activities and make long term investment decisions. These are
just a few of many was that different people use cash flow information. Manager analyzes cash flow in
making variety of short term and long term decisions by predicting flow of cash through the company.

2.12. Decision Making

Decision Making is the process of choosing a course of action from among
alternative. If there are no alternative there is no decision is required a basic

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assumption is that the best decision is the one that involves the most revenue
or the least amount of cost.

The process of making decision is generally considered the following steps:

1. Identify the various alternatives for a given type of decision.

2. Obtain the necessary data to evaluate the various alternatives.
3. Analyze and determine the consequence of each alternative.
4. Select the alternative that appears to best achieve the desired goals or
objectives.
5. Implement the chosen alternative.
6. At an appropriate time, evaluate the result of the decision against
standards or other desired result.

2.12.1. Decision structure

Decision vary interims of degree they are structured. Decisions are classified
in to three in this regard (Romney, 2000).

2.12.1.1. Structured decision

Is repetitive, routine, understood well enough that they can be delegated to low
level of employee in an organization. For example, the decision about extending
credit to established customer requires only knowledge about customer, credit
limit and current balance. Structured decision often can be automated
(Romney, 2000).

2.12.1.2. Unstructured Decision

It is non-recurring and no routine decision. For example choosing the cover of
magazine and hiring senior management. No frame work or model exists to
solve such problem instead they require considerable judgment and intuition.

Nevertheless, unstructured decision can be supported by computer based

decision can be supported by computer based decision aid that facilitates
gathering information from diverse source (Romney, 2000).

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 2.12.1.3. Semi-structured decision
Is characterized by incomplete rule for making the decision and need for
subjective assessment and judgment to supplement formal data analysis.
Although such decision cannot be fully automated, they are often supported by
computer based decision aids (Romney, 2000).

2.13. Decision Maker: users of accounting information

Accounting and accounting information are used more than commonly
realized. The accounting information can be divided roughly in to three groups
first those who mange a business second; those outside business enterprise
who have a direct financial interest in business; thirdly, those persons, groups
or agencies that have indirect financial interest in the business (Needles 1987).

2.13.1. Management
Management is a group of people in a business who have overall responsibility
for operating the business and for achieving the company’s goal. Manager
must constantly decide what to do, how to do it, and whether the results match
to the original plan.

Successful manager constantly make the right decision on the basis of timely
and valid. Many of these decisions are based on the flow of accounting data
and their analysis. For this reason, management is one of the most important
users of accounting information and a major function of accounting is to
provide management with relevant and useful information (Needles, 1987).

2.13.2. User with a direct financial interest

A major function of accounting is to measure and report information about
how a business has performed. Most business periodically publish a set of
general purpose financial statement that report on their success in meeting
objective profitability and liquidity. Though this statement show what has
happened in the past they are important guides to future success. (Needles,
1987).

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 2.13.2.1. Present or potential investors
Those who are thinking of investigating in a company and those such as
financial analysis who advise investor are interested in past success of
business and its potential earning in the future. A thorough study of the
company financial statement will help potential investors judge the prospects
for profitable investment. After investing in a company investor must
continually review their commitment (Needless, 1987).

2.13.2.2. Present or potential creditors

Most companies must borrow money for both long-term and short term
operating needs. The creditors who lend money are interested mainly in
whether the company paid the debt at the appropriate time. They will study
the company’s liquidity and cash flow and as well as its profitability. Banks,
finance company, mortgage companies, securities firm, insurance firm,
individual and other who lend money Expect to analyze a company’s financial
position before making a loan to that company (Needless, 1987).

2.13.3. Users with an indirect financial interest

Society as a whole through its government officials and public groups has in recent
year become one of the biggest and most important users of accounting information.
Some of the user who need accounting information to make decision on public issue
include taxing authority, regulatory agencies economic planners and other groups
( Needless, 1987).

2.14. How accounting information system can add value

One way the accounting information system can add value is by providing
accurate and timely information to perform the various value chain activities.
Well designed accounting information system can further improve the efficiency
and effectiveness of those activities by:

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Improving the quality and reducing the cost of product or service: - For
example, accounting information system can monitor machinery so that
operators are notified immediately when the process fall outside acceptance
quality limits. This simultaneously helps maintain product quality and reduce
the amount of wasted material and cost of rework.

Improving efficiency:- A well designed accounting information system can

help improve the efficiency of operations by providing more timely information.
For example a just in time (JIT) manufacturing approach require constant
accurate and up to date information about raw material inventories and their
location.

Improving decision making: - Accounting information system improves

decision making by providing accurate information in timely manner to
appropriate employees.

Sharing of Knowledge:- Well designed accounting information can help to

share knowledge and expertise, thereby improving operation and even
providing a competitive advantage. For example, public accounting firms use a
corporate internet to share best practice and to support communication among
people located at different offices. Employees can search the company wide
data base to identify the relevant experts to provide assistance for particular
client. Thus, all of the firm’s accumulated international expertise can be
available to any local client (Romney, 2000).

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 CHAPTER THREE: METHODOLOGY

3.1. Source and type of data

For this study, the researchers used both primary and secondary source of
data. The primary data was obtained from the Dashen bank employees
because they are familiar with the institution accounting information and to
get sufficient information about the institution accounting information system.
Secondary data is collected from secondary source like manual of the bank.

3.2. Method of data collection

In this study the researchers used a structured questionnaire that contain
both open as well as closed ended question that was distributed to employees
of Dashen bank. Questionnaire was selected to collect primary data because it
helps the researcher to collect attitude, opinion and suggestion of respondents.

In addition, primary data collected using structured and unstructured direct

personal interview that conducted with management of Dashen bank because
interview provides an opportunity for interviewer to ask follow up question and
also help respondent to ask clarity if there are any ambiguity in the questions.

3.3. Sampling design

The objective of sampling is to obtain accurate and relevant information about
the entire population within a short period of time and with less money. The
researchers selected the sample from the total population who are believed to
be representative of the population. The respondents were manager,
accountants and other employees that have responsibility in the bank. The
sampling technique that was implemented for this study is judgmental
sampling method because of difference in employee educational level,
experience. Also it enables us to get accurate and sufficient information about

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the banks accounting information. The total population of Dashen bank share
company in Bahirdar branch is 50, out of this the researchers used 25
employees for this study.

3.4. Method of data analysis and presentation

For this study the researchers used both qualitative and quantitative method of data analysis. After
gathering all necessary qualitative and quantitative data, the data processing was started by editing
data’s obtained through questionnaire and interview to check any error and omission and appropriate
analysis is presented by using table and percentage form accompanied by relevant explanation.

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

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This chapter focused on data presentation and interpretation that are collected
from primary and secondary source of data. The primary data were collected
through the use of questionnaire from 20 respondents out of the sample of 25
that work in different unit of the bank because 5 respondents fails to return
the questionnaire and through the use of structured and unstructured
personal interview with the management of the bank.

4.1 personal attribute of the respondent

Table 4.1.1 respondent sex distribution
Sex Frequency Percentage

Male 17 85%

Female 3 15%

Total 20 100%

Source: Survey, 2007 E.C

As shown in the above table 85% of the respondents are male & 15% are
females.

Table4.1.2.Age distribution of the respondent

Age group Frequency Percentage

Below 25 year 3 15%

26-30 year 9 45%

31-40 year 6 30%

Above 40 year 2 10%

Total 20 100%

Source: survey, 2007 E.C

The age group of the bank indicates 15% of respondent are below 25 year, 45%
of the respondent are 26-30 year, 30% of respondents are 31-40 year, and 10%
of respondents are above 40 year.

Table 4.1.2 Educational level of respondent

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 Educational level of Frequency Percentage
respondent
Diploma 4 20%

Degree 15 75%

Masters degree 1 5%

Above masters - -

Total 20 100%

Source: survey, 2007 E.C

The above table describes the educational level of the employees in the bank.
From the total of respondents 20% are diploma holders, 75% of employees are
degree holders and 5% of the respondents are master degree holders. This
shows that most of the bank employees are educated so that, they have
knowledge about the companies accounting information and give qualified
information.

Table 4.1.3 work experience of respondents

Work experience Number of respondent Percentage

Below 2 year 4 20%

2-5 year 8 40%

6-10 year 6 30%

Above 10 year 2 10%

Total 20 100%

Source: survey, 2007 E.C

From the above table out of total respondent, 20% have a work experience of
below 2 years, 40% respondents have work experience of 2-5 years, 30%
respondents have work experience of 6-10 years and 10% respondents of the
bank have a work experience of above 10 years. The above result shows most
of the bank workers are experienced in their work .So this help the researchers

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to get relevant and detail explanation on the company accounting information
and they provide necessary information that helps the management to make
decision.

Table4.1.4. Position of respondents in the bank

Position Number of respondent Percentage

Credit analysts 1 5%

Customer service 9 45%

agent

Teller 3 15%

Cashier 2 10%

Assistant cashier 1 5%

Accountant 2 10%

Supervisor 2 10%

Total 20 100%

Source: survey, 2007 E.C

As we seen from the above table, 5% of respondents are credit analysts, 5%

assistant cashier, 45% of the respondents are engaged in customer service
agent (CSA), 15% of the respondents are teller and 10% of respondents are
cashier, accountant and supervisor. From this, most of the employees are
engaged in customer service agent.

4.2. Response towards the bank accounting information system

Information system can be manual and computerized accounting information
system. Manual information system is in which most of the data processing
load is completed by people without the use of computer. Computer based

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information system is in which a computer is used as a data process or all
equipment .program ,data and procedure for performing a set of related task on
a computer (Romney,2000).

Table4.2.1. Type of accounting information processing system the bank uses.

Type of AIS Frequency Percentage

Manual - -

Computerized 14 70%

Both 6 30%

Total 20 100%

Source: survey, 2007 E.C

As the above table indicated, 70% of the respondents said that the bank follow
computerized and 30% of the respondents said that the bank uses both
computerized and manual type of processing system.

From this the researchers conclude that the bank uses mostly computerized
accounting information system. These processing systems save time, reduce
labor cost, and provide necessary information to decision maker with high
quality and clarity. This helps the manager to make well informed decisions.
Some respondents said that the company uses both computerized and manual
processing system in order for making the company free from any loss when
the computerized fail to do work like network problem, data loss through power
failure or computer virus and danger of hacker stealing data.

Table4.2.2.The use of accounting information for decision making

Response Frequency Percentage

Yes 18 90%

No 2 10%

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 Total 20 100%

Source: survey, 2007 E.C

As the above table indicated, 90%of the respondent states that the bank uses
accounting information for decision making. On the other hand 10%of the
respondents said that the bank does not uses accounting information for any
decision making ,this may be the carelessness of respondent when they fill this
questionnaire. From this the researchers concluded that the bank uses
accounting information for decision making.

Respondents have given the following responses for open ended questions
asked “How Dashen bank uses accounting information for decision
making?”
In every real sense, there is no sound economic decision without the existence
of this information. The following are some way to use accounting information
for decision making:
 By reviewing each financial transaction activity of the bank.

 By control the quality of accounting information existed in the bank.

 By supervising the day to day activity of the employees.

 Assessing the timelines of each financial transaction for intended

decision making.

Table.4.2.3. Adequacy of information for decision making processed in the

bank

Response Frequency Percentage

Yes 15 75%

No 5 25%

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 Total 20 100%

Source: survey, 2007 E.C

As the above shown that 75% of the respondent said that the accounting
information processing system used by the bank provide adequate information
for decision maker. In order to input adequate information in the processing
system first all the financial data must be analyze and correcting errors
account by the professional accountant who have a deep knowledge for every
financial account. On the other hand 25% of the respondent argue that some
accounting information are not adequate for decision maker because the
financial data are wrongly analyzed by an employee of the bank who are
unqualified in gathering and processing financial accounts. This makes the
financial user not rely on the bank accounting information and they are not
satisfied. From this the researchers concluded that most of the accounting
information processed in Dashen bank is adequate and there is some
inadequacy of accounting information in the bank.

Table4.2.4. Customers benefited from the banks accounting information

system
Item response Frequency Percentage

Yes 18 90%

No 2 10%

Total 20 100%

Source: survey, 2007 E.C

As the above table indicated ,90% of respondent says that the banks customer
are benefited from the company’s accounting information system and 10% of
the respondent says customer are not benefited because some people are not
educated who have no idea how the system are operated. As per most of the
respondent response the accounting information that the bank used is mostly
computerized system which does not consume more time and effective in

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transferring data in to information. The computerized system provides timely
information about customer financial activity because it is completed through
computer. But the data entered in to the computer must be verified and
analyzed by the professional accountant. This tends to increase customer
satisfaction on the bank accounting information system. From this
researchers concluded most of the bank customers are benefited from the bank
accounting information system.

4.3. Role of current accounting information system for informed decision making.
Table 4.3.1 the role of information provided by the bank accounting
information system
Criteria Frequency in percentage

Very good Good Fair Bad Very Total

bad

Accuracy 65% 35% - - - 100%

Timeliness 60% 35% 5% - - 100%

Completeness 45% 40% 10% 5% - 100%

Consistency 60% 20% 15% 5% - 100%

Source: survey, 2007 E.C

As seen from the above table the information provided by the banks accounting
information system is very well. The bank accounting information role in
decision making is very good according to the response of the company
workers. Information system is a key asset and it enable to control the
organization resources, help in accumulating & summarizing financial report of
the company and even provide very good & necessary information that
supports the organization decision making. On the other hand some
respondents say the information processed in the bank may not include that
fails to represent relevant phenomena. This implies that the accuracy,
timeliness, completeness and consistency of the bank accounting information
are so very good.

Table 4.3.2 Reliability of accounting information processed in the bank

Response Frequency Percentage

Yes 17 85%

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 No 3 15%

Total 20 100%

Source: survey, 2007 E.C

As we have seen in the above, 90% of the respondents said that the accounting
information is reliable. Like other business organization, in Dashen bank to
say accounting information is reliable it depends on the external user’s
response of the bank. Based on this the majority of respondents said that “yes”
reliable. Because there are many different external user attracted to the bank
for all economic decision such as saving and investment decision and other. On
the other hand 10% of the respondent said that it is not reliable because the
providers of information have no so much quality since there are some non
professional employees. From this the researchers conclude that the
accounting information processed in the bank is reliable but not all.

Table 4.3.3 Relevance of accounting information processed in the bank

Responses Frequency Percentage

Yes 17 85%

No 3 15%

Total 20 100%

Source: survey, 2007 E.C

As the above table indicated, 85% of the respondents said that the accounting
information is relevant. This makes the decision maker of the banks such as
investor, and creditor and other users to predict about the outcome of the past,
present, and future event in the bank. The availability of the bank accounting
information system that is computerized enabled accountant to make a great
supportive in providing timely information to decision maker. 15% of the
respondent said the accounting information processed in the bank is not
relevant. This makes the financial users fails to decide correct decision on
timely basis. Generally accounting information is relevant there must be timely
information to influence their decision. From this researcher conclude, the
accounting information processed in the bank is relevant to make timely
decision but not all.

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4.4. The preparation of accounting report in Dashen bank
The preparation of accounting report in any organization provides accounting
information to users. This report may be prepare daily, weekly, monthly and
yearly for the purpose of providing information processed in an organization.
The prepared report is either for external or internal users. For internal users
this information is used by the manager to conduct daily operation, planning
future operation, to develop certain strategies and to evaluate the company
performance by comparing the actual and budgeted result. External user also
uses report of the bank for the purpose of investment and credit decision.

Table 4.4.1 preparation of accounting report

Response Frequency Percentage

Yes 20 100%

No - -

Total 20 100%

Source, survey, 2007 E.C

From the above table 100% of the respondents said that the bank prepares its
accounting report. This report is either for internal or external report purposes.
The report the bank uses for internal purpose is to evaluate the bank
performance and comparing the result to the previous report, and the
management uses this report for making decision in every aspects of area in
the bank. The report used as external purpose for external users by showing its
financial statement and the users decided to invest, borrowing and making
loan through this report. According to the above table, the researchers
concluded that the bank prepare its accounting report.

Table 4.4.2 how often the bank prepares its report

Period Number of Percentage

respondent

Daily 4 20%

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 Weekly 1 5%

Monthly 10 50%

Yearly 5 25%

Total 20 100%

Source: survey, 2007 E.C

As shown in the above table 20% of the respondents said that the bank
prepares its accounting report daily, 5% of respondent said weekly, 50% of the
respondents said monthly and 25% of the respondents said yearly. According
to majority response, preparing accounting report is their duty because the
nature of work forces to do this. This information is processed through
different steps or accounting cycles and reaches to manager who is responsible
to evaluate and analyze it and other user of information. To make available this
information, the employee processes the data from recording transaction to
preparing financial statement. From this researchers conclude that most of the
time the bank prepares its accounting report monthly because the bank need
to know at different interval “ how financial data are going on”.

Respondents have given the following responses for open ended questions
asked “for what purpose Dashen bank prepares its accounting report?’’

 For the purpose of end user (board of directors, government, creditor,

investor, and others) who wants financial report. Board of director needs
information if there is the need to improve or expand their working
system to make decision on these activities. Government needs this
information to know the amount of tax that levied to the bank. The
creditor uses this report for the purpose of loan, a loan is less risky if the
amount of liability is less than the amount of asset in the balance sheet
of the bank, the reverse is true that is high risky. This aids the creditor
to make decision. Investor is also the user of the banks accounting
report to value the financial operation and making either short term or
long term investment decision.

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  To comply with legal requirements.
 For the purpose of internal users. The manager needs the accounting
information to evaluate company’s performance, day to day activities,
whether the bank is on the way of making profit or loss and so on. To
evaluate operating efficiency the manager uses some ratio analysis.
 For internal check up and financial welfare of the bank.
 For comparing the actual financial status with budgeted.

Table4.4.3. Internal financial users of Dashen bank making decision through

the accounting report
Response Frequency Percentage

Yes 16 80%

No 4 20%

Total 20 100%

Source: survey, 2007 E.C

As shown from the above table, 80% of the respondents said that the internal
financial users of Dashen bank use accounting report and 20% of the
respondents argue that they do not uses accounting report for any decision
making. From this, the researchers conclude majority of internal financial user
of Dashen bank uses accounting report for making decision in financial
aspects.

Respondents have given the following responses for open ended questions
asked “What type of decision those internal financial users of Dashen
bank give through the accounting report?”

According to the response of respondents there are different decision made by

the internal users of the bank by using accounting report of the bank. Those
decisions are:

 To approve loan.
 To open new branch.

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  To solve any liquidity problem that the bank faces.
 Decision to reduce expenditure and to assess more income source.
 Lending decision.
 Decision to allow bonus to employee based on company
performance.
 Decision to increase salary to employees.
 Decision to increase the company capital and maintaining
provision for doubtful loan.
 For internal control purpose.
 To facilitate the audit process of the bank.

Analysis for sample interview question

The following sample interview questions are answered by personal interview

with vice- manager of Dashen bank and we presented the response as the
follows:

1. Could do you tell us about your company accounting information look

like in your point of view?

Accounting information in the bank is financial transaction and day to day

activity of a company operating period and organizes those transaction and
events in a useful form to communicate the results to financial users. All the
transaction that the bank operates in the given period is processed according
to the steps in accounting cycles. All transaction data are recorded, classified,
adjusted and prepared according to generally accepted accounting principle
(GAAP). The financial statements are prepared for both internal and external

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users. For internal purpose manager can uses those financial statement in
order to value the company performance .This company performance measure
is depend on return on asset and equity, net interest margin and liquidity
position. Some employees of the banks are going to generate inaccurate
financial data because they are unqualified in processing and gathering
accounting data.

2. How accounting information is processed in your bank?

After all transaction are recorded and adjusted the information of the data are
processed through the computerized based system of the banks because
computerized system able to provide timely and relevant information to
decision makers. Manual information system is used by the bank for the
purpose of reservation when the computerized program fails to do by different
factor. This manual processing system is not used by the bank for preparing
annual report for external purpose. A computerized processing system may not
always provide accurate and completed information to users this is because the
data entered in to the system is wrong information. This makes financial users
are unreliable on the computerized system of the bank. This unreliability is not
on the processing system but the personal employee qualification in processing
and analyzing accounting data entered in to the system in the bank.

3. What is the decision process look like in Dashen bank?

Before explaining the term decision making process it has to be clarified what
is decision: decision is “a choice leading to certain desired objective”. An
individual or multiple participates in decision making can be decision maker.
The decision making process of Dashen bank share company posses the
decision making process of every activity. Identify objective; the management
identify the goal and objective of the bank that guides to evaluate the
desirability of certain way of action compared to another. So management
identifies profit maximization choice or shareholder wealth. Search for
alternative course of action; the bank management search a course of action

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which makes it possible to achieve the desire goal set. Gathering data about
the alternative; data is gathered for both long term and strategic decision and
for short term or operating decision. Select appropriate alternative course of
action; banks select alternative that makes banks more profit. Implementation
of decision is implemented by the budgeting process. This plan is a statement
of banks expectation that tries helping to realize the management decision. It
communicates every employees in the bank which role for achieving the banks
aim.

4. In what way you express the relationship between accounting

information and management decision of your company?

Accounting information is the cornerstone of one’s business organization. This

information is used by different financial users for making informed decision.
Manager is one of the users of accounting information for making company to
achieve the planned goal. For example an accountant has to establish
performances which provide feedback by comparing result with plans.
Deviation from the plan should be taken in to closer consideration by manager.
Both budget and performance report are considered by managers. In this way
accounting provides assistance to the manager especially by showing the
problem area and by measuring action.

5. How your banks control the quality of accounting information?

Dashen bank is one of the business organizations that use the quality of
1accounting information for giving good information to customer and to the
bank. So the bank control this information as follows: Relevance; Dashen
bank control this information by providing timely information to all the
financial users of the bank before they losses to decided wrong decision to
company status. Reliability; Dashen bank control this information by verifying
and examining the banks activity by employing professional accountant to give
valid financial information to financial users. Comparability; Dashen bank uses
this information to compare the banks ones accounting period performance

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with the preceding accounting period. To control this information banks day to
day activity of the employees is supervised (checked) by an assigned profession
in order to achieve the desired goal of the bank. Consistency; Dashen bank
Bahir dar branch controls this information according to the adopted principle
in home office. Neutrality; an information given by an employee of organization
must be free from bias. Dashen bank controls this information by segregating
the duties of each employee in the bank.

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

The study was conducted in Dashen bank Bahir Dar branch. After the
researchers conducted this study, the researchers tried to put some summary,
conclusion and recommendation.

5.1. Summary
 Most of the bank employees are young people. This has a positive impact
on the banks because they can serve the bank for a long period of time.

 Most of the bank employees have a work experience.

 Mostly the bank uses computerized accounting information processing

system and also the bank sometimes uses manual processing system.

 Accounting information system have role to the bank by providing

accurate, timeline, and complete data for decision making.

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  The bank uses accounting information for decision making by reviewing,
controlling and assessing the timeliness of each financial data existed in
the bank.

 The bank reduces the inadequacy of accounting information through

hiring qualified employees and by control the quality of accounting
information.

 All in all, there is no decision without information. Accounting

information plays a great role in decision making. The main objective of
business organization is to make profit, so this is based on information
or accounting information obtained from internal activity and external
information.

5.2. Conclusion
Data or information gathered from employees as well as from vice-manager
totally through questionnaire would be analyzed. After all this, the researcher
arrived at the following conclusion.

 Dashen bank has employees who are qualified and unqualified in

gathering and processing accounting data.

 The accounting information processed in Dashen bank is relevant and

reliable but not all. The availability of this information to the manager on
time implies it is relevance and reliability.

 The adequacy of Dashen bank accounting information for decision

making is good but not all.

 Most of Dashen bank customers are benefited from the bank accounting
information system but not all.

 The information provided by the bank accounting information system is

very good.

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  The accounting information processed in the bank provides timely
information for decision maker of the bank.

 Dashen bank prepares its accounting report for a given period of time.

 The bank prepares accounting report frequently as much as possible

because different users need it frequently.

 The bank prepares its accounting report for both internal and external
financial decision makers.

 The internal financial users of Dashen bank making decision through the
bank accounting report for different purpose.

5.2. Recommendation
Based on the study conducted, the researchers recommended as a solution for
inefficiency and problems in the bank.

 There are some unqualified employees those who are working by

experience. To operate more efficiently those workers should be
substituted by professional accountant those who have concept about
the accounting information.

 As the bank uses mostly computerized based system some customer are
not benefited because they are not educated, so the bank should use
easily understandable interpreter machine.

 Some accounting information processed in the bank are not reliable and
relevance. So in order to make reliable and relevance, the bank must
analyze, control and supervise accounting data before it processed in the
system.

 The bank adequacy of accounting information for decision making is

good. In order to make it better the bank should hire qualified

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accountant because employees affect the adequacy of accounting
information.

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 Reference
 Ahemed riahi, (2000), “accounting theory”, 4th edition.

 Donald E keiso, (2004), “Financial accounting”, 4th edition.

 Fees and wareen, (1994),” accounting principle”, 16th edition.

 Gelinas, (2005),” accounting information system”, 6th edition.

 Laundon, “management information system”, page,6.

 Larson Kermit D,” financial accounting”, page, 55-65.

 Nedless Anderson, (1987), “principle of accounting”, 3rd edition.

 Kapla and Krishnan, (1998),” accounting principle”.

 Keiso and Weygantt, (2006),” financial accounting”pp, 35-41,9 th edition.

 Romney M and steibart, (2000),” accounting information system”, 8th

edition.

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Appendix
Bahir Dar University

College of Business and Economics

Department of accounting and finance

Questionnaire

This questionnaire was prepared by accounting and finance department

student that would be filled by the employee of Dashen bank Share Company.
Its purpose is to write a senior essay on the role of accounting information on
decision making case Dashen bank Share Company Bahir dar Branch.

The data collect for this research will use only for academic purpose and kept
with highest confidentiality.

Instruction

 Writing your name is not required.

 Put” “marks on the boxes provided next to your choice
and use the space for question requiring your detail
explanation.

Read the following question carefully and please answer all questions as much
as possible.

1. Personal information

Sex: Male Female

Age: below 25 year 26-30 year

31-40 year above 40 year

2. Educational background

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 Diploma masters degree

Degree above master’s degree

3. Work experience

Below 2 year 6-10 year

2-5 year above 10 year

4. What is your position in the bank? ________________________________________

5. Which type of accounting information processing system that Dashen bank

uses currently?

Manual

Computerized

Both

6. Do you think the current processing system that Dashen bank uses provide
adequate information for decision making?

Yes No

7. Are the bank customer benefited from the companies accounting information
system?

Yes No

8. If your answer for question number 7 is “Yes”, in what way?

______________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________.

9. If your answer for question number 7 is “No”, why they are not benefited?

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 ______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________.

10. Does Dashen bank uses accounting information for decision making?

Yes No

11. If your answer for question number 10 is “yes”, how?

_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
________________________________________________.

12. How do you rate the information provided by the banks accounting
information system?

Criteria V.good Good Fair bad V.bad

Accuracy
Timeliness
Completenes
s
Consistency

13. Do you think that Dashen bank accounting information system provides
reliable accounting information to decision maker?

Yes No

14. Does Dashen bank accounting processing system able to provide relevant
accounting information to decision maker?

Yes No

15. Does Dashen bank prepares its accounting report?

Yes No

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16. If your answer for question number 15 is” Yes”, how often?

Weekly Daily

Monthly

Yearly

17. If your answer for question number 15 is “Yes”, for what purpose?
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________.

18. If your answer for question number 15 is “Yes”, does the internal financial
user of Dashen bank making decision through this report?

Yes No

19. If your answer for question number 18 is “Yes”, what types of decision
they give through this report?

______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________________.

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 Sample interview question

1. Could do you tell us about your company accounting information look

like in your point of view?

2. How accounting information is processed in your bank?

3. What is the decision process look like in Dashen bank?

4. In what way you express the relationship between accounting information

and management decision of your company?

5. How your banks control the quality of accounting information?