ACCOUNTING INFORMATION SYSTEMS AND THEIR IMPACT ON THE QUALITY OF CAPITAL EXPENDITURE DECISIONS

Abstract

The aim of this article is to determine the importance of the use of accounting information systems in economic units and its interdependence with improved decisions on investment and capital expenditure. The article addresses the concept of capital investment in economic units and the importance in the economic development of developed countries as an economic and strategic decision, as well as the stages followed by investment decision makers and the role of good accounting information systems in rationalizing the decisions of shareholders and owners of the enterprise and determining the efficiency of companies and institutions in improving their cash flows. The article touched upon the concept of financial accounting as a service activity and its importance in recording and storing economic operations and events through the accounting system and the production of financial reports at the end of each financial period and the relationship of accounting information elements and their main characteristics and their impact on capital decision makers At the end of the article, what is the quality of accounting information and the extent to which it affects financial reports published by these economic institutions directly to investment decision makers and the greatest impact on their business and activities. Hence, this article evaluates the effectiveness of accounting information systems calculated in economic units in achieving the quality of financial reports and making capital decisions and the types of such decisions whether they relate to the implementation of organizational functions or productive, marketing and financing decisions.