THE ROLE OF ACCOUNTING INFORMATION ON DECISION-MAKING PROCESS IN SELECTED CHARITY ASSOCIATIONS IN ADDIS ABABA

Abstract

The study focuses on the role of accounting information on decision-making process of selected charity associations. The study was carried out at Mekedonia Charity Association (MCA), Wud Aregawiyan Humanitarian Association (WAHA) and A Charity Association for the Destitute and Abandoned People (CADAP) in Addis Ababa. The objective of the study is to investigate the role of accounting information on decision-making process in selected charity associations in Addis Ababa. The study uses a survey research design to study accounting information and its relationship with decision-making in charity associations. For the purpose of this study the study population consisted of 150 registered charity associations in Addis Ababa city working on elders. The sample size of the study was 3 charity associations. There was a collection of primary data from 100 respondents using self-administered questionnaires. Descriptive statistics were used to analyze the data. Results indicated that comparability, reliability and relevance are important in determining decision-making in charity associations. Key findings of this study shows that Accounting Information has a significant role on decision making process in charity associations. From the study findings, the study recommends that the management puts in measures to improve both quantitative and qualitative characteristics of financial statements in their charity associations so that they are easily comparable to those industry averages. Another study can also be done in the private sector to assess if there will be similar or conflicting findings with explanations for the same being investigated.