Faculty of business department of accounting an assessment of fixed asset managementin the

1.9. Organization of the Study
The paper was organized into four major chapters. The first chapter deals with the general 
background of the study, statement of the problem, objective and significance of the study with 
its scope and limitation in accordance with the study design and methodology. The second 
chapter contains bird eye view of related literatures.
Chapter three addresses presentation and analysis of collected data and analysis of finding of the 
study The last chapter, chapter four contains summary, conclusion and recommendation part of 
the study.
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CHAPTER TWO
REVIEW OF RELATED LITERATURES
Fixed Capital
Fixed capital is the capital, which is needed for meeting the permanent or long-term purpose of 
the business concern. Fixed capital is required mainly for the purpose of meeting capital 
expenditure of the business concern and it is used over a long period. It is the amount invested in 
various fixed or permanent assets, which are necessary for a business concern.
Definition of Fixed Capital
According to the definition of 
Hoagland, 
“Fixed capital is comparatively easily defined to 
include land, building, machinery and other assets having a relatively permanent existence”.
Financial Management
Character of Fixed Capital
• Fixed capital is used to acquire the fixed assets of the business concern.
• Fixed capital meets the capital expenditure of the business concern.
• Fixed capital normally consists of long period.
• Fixed capital expenditure is of nonrecurring nature.
• Fixed capital can be raised only with the help of long-term sources of finance
The concept of internal control has gradually evolved over the years with the greatest 
development taking place of the beginning of 1940 as modern businesses increased in sized an 
techniques, the adoption of methods and procedures has become inevitable in order to increase 
the efficiency of the business of the purpose of preventing errors and frauds. Furthermore, the 
regulations of business activities under efficient system of internal control enable to minimize 
detailed work to be undertaken b an independent auditor. Therefore, the need for the 
development of internal control system has become essential for both the management and 
auditing activities (Batra and Bagardia, 1992; 127)
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Different authorities have defined the expression “internal control” in different ways, 
BatranaBugardia (1992) have defined internal control as “Internal control comprises the plan of 
organization and all of the coordinated methods an measures adopted with in a business to 
safeguards its assets, check the accuracy and reliability of its business accounting data, promote 
operational efficiency, and encourage adherence to prescribed managerial policies.”
Johnson (1974 states the “internal control system is one where in the accounting work of the 
employee is complemented and verified by the work of another employee but both employees 
are working independently and without duplication of each other’s work.”) Internal control may 
be defined as the whole system of controls, financial and otherwise, established by the 
management in order to carry on the business of a company in an ordinary manner, ensure 
adherence to management policies, safeguard the assets and secure, as for as possible, the 
completeness and accuracy of the accounting records (Internal Audit manual of East African 
Group (ETH) PLC).A recent definition which is given by an organization of top federal 
government auditors from over 100 nations describes internal control as a management tool used 
to provide reasonable assurance that management’s objectives are being met (Sawyer and 
Diffenhofer 1996; 213).