ABSTRACT

The  need for  the  continuous  evaluation of  the  financial   statements    of business organizations, so as to  assess the  financial  position of a  bank brings about: the question of which tool or method of analysis that will be used  to make such assessment or evaluation of the various dimensions of the business and financial operations of the organizations in question.   One of such method or tools of analysis is accounting ratios. This project aims at assessingthe reliability and validity of accounting ratios in evaluating the financial   statements  of business organizations using Nigerian Breweries PLC and    PZ   Niocria   PLC,  as selected companies  for  the  study,   in   order  to achieve   this,   the  works of various  authors were looked at in order to ~Jct their  viewpoint on the subject. Also a  field work was conducted in  which questionnaires were distributed  among respondents made up of accountinq staff  of both Nigerian  BrevyeriesPLC  and PZ  Nigeria PLC  Aba Abia State, in which questions bordering on the  topic were asked and· answers given.   A sample    sizes of'.   67  was  derived  from  a   population  80  staff   of  ttle · accounting  department of both  Nigerian Breweries PLC  and PZ  Niqeria   PLC usinq  Yaro Yemeni.  Some findings made from the research arc  that ratios helps  the  analyst to  make qualitative judgments  regarding·  the financial position and performance of the company, and the fair interpretation of the company's financial    statements.   It  was  also recommended that  accountinq ratios  should   be used by manaqcmcnt  to evaluate  the financial    ;;L;-;tcrr;cnts of the companies  for a  correct interpretation   of such statements,   and   a:;  a performance indicator as it outscores other tools of financial analysis   such as fund  flow  statements   and  straight  forward  criticism.   Also,  it   was suqqested that  the  Nigerian Breweries PLC management should maintain an average level of liquidity to enable it meet its financial obligations, while PZ  Nigeria  PLC  should work on their profitability aspect, as this information will   be  provided,   when   accounting  ratios  are   computed   usinq  the information   from the financial statement.  Thus serving as a  qood tool for· evaluating  financial statements.

TABLE Of  CONTENT

Dedication  --                                                                                                  iv

Acknowledgement-• 

Abstract  --  --

List of tables   -• 

CHAPTER ONE INTRODUCTION

1.1     Background    information--

1.2    Statement   of problems--

1.3    Objectives  of the study--

 1.4     Research  questions--     --

 1.5     Research   hypothesis  -- -•

\\6    scope  of the study--

1.7    Significance   of the study --              -'"

1.8     Limitations    of the study-- 

CHAPTER  TWO

2.0     Review of related  literature  --                                                            11

2.1       Preamble   --                                                                                           11

2.3 Ciassification  of accounting  ratios----

  Types of ratios-- --

2.3      Importance  of ratios--  --

2.4    Value  of ratios--   --

2.5     Criteria for accounting  ratios--

2.7     Users   of ratio analysis--

2.8     Financial statement--     --

2.9      Lending against  a balance sheet--  -- 

CHAPTER  THREE

RESEARCH  METHODOLOGY

3.1    Research  design--

Area of study--     --

Scope of the study----

3.4     Population of the study--

3.5     Sample  size determinatio    --   --

CHAPTER   FOUR

DATA PRESENTATION AND ANALYSIS

4 .1     Data  presentation   -                                                                             53·

4.2     Data  analysis   --   --                                                                             54

4.3    Test and interpretation   of hypothesis  --                                           69 _              :

4.4    Summary   of results--    --                                                                   83

4.5    Inter-temporal    comparison  of Nigerian breweries  PLC --               83

4.6    inter-temporal     comparison  of PZ  Nigeria PLC  (2005-2010)   --       88 .

4.7     inter-company/firm     comparison  of Nigeria breweries  PLC and PZ  Nigeria   PLC--                                                                                                    93  . 

  CHAPTER  FIVE

Summary   of findings,  recommendation   and conclusion

1.1    Summary   of findings.--   --       --       --       --       --

    Recommendations--

5.3    Conclusion--

5.4    Suggestion    for further  research--

 References