Resumen de The Impact of Financial Accounting in Decision Making Processes in Business

Hussen Amran Naji Al Refiay, Azher Subhi Abdulhussein, Sinan Salem Kasim Al Shaikh

• Purpose: This Study aims to test the impact of financial accounting on the decision made by business managements. As well as to analyse the relation among the business management decision and the financial accounting.

    Theoretical framework: This research is theoretically covered by accounting knowledge by testing the relationship between the accounting information and decision-making process.

    Design/methodology/approach: Data was collected from the tehrantimes.com and it was observed that, there are total 33,800 active small and medium organization operating in Iraq in 2019. For simplifying the survey and data collection as well as to reduce the time and costing of survey, an online survey method is used to get the votes of all responders. In this survey, 836 responders were invited, participated and interviewed using a prepared using well questionnaire.

    Findings: The result shows that the business accepts the fact that the financial accounting information, helps in analysing the factors which affect start-ups in the early state of business establishment, the also shows that financial accounting information helps in analysing competitor, and it satisfactorily defines the study of alternative options which buyers may have with respective product or service. The study also shows that financial accounting information does not helps in defining the bargaining capacity of supplier or buyers.

    Research, Practical & Social implications: This study helps accounting regulators and process decision maker by having more understanding of this relationship.  In addition, it increases the knowledge of the companies regarding the decision making and accounting information by developing the accounting information system to increase the quality of accounting.

    Originality: This research contributes to accounting felid and accounting knowledge  as well as to accounting practice by understanding the relationship between the financial information and decision making.