Assessment of Accounting Practice in Large and Medium Scale Enterprise in Addis Ababa

Abstract

This study seeks to assess the accounting practice of large and medium scale enterprise in Addis Ababa. The sector is constrained by a number of factors which includes among others minimum accounting practice and difficulty in making the accounting practice useful for users of the information. For the achievement of the objective of the study qualitative and quantitative research approach particularly survey design were used and the data obtained were analyzed using descriptive statistics. The study revealed that the majority of the studied firm has formal accounting practice but, most of the reasons are for cost controlling and meeting external regulatory and legal reporting requirement are the major purpose and the study also revealed that the most important purpose of the record keeping in large and medium scale enterprises is for tax filling. To boost the users of the accounting information the reporting entities must improve the quality of the reports.