Simple bar chart is prepared to indicate the value of one variable only for different periods. These bar charts are better modes of presenting sales data, labour-turnover, various accounting ratios in the terms of percentages. Vertical bars are usually preferred in comparison to horizontal bars. Bar charts usually consist of black or colour rectangles vertical or horizontal having appearance of solid bars. Bar charts are particularly used for comparing the values of a variable. Graphical presentation do includes following types of diagrams and charts:īar charts are most commonly used type of data presentation. Graphical presentation being most effective medium of reporting removes dullness and confusions which we usually find in other forms of reporting. Various management professionals express their views through graphs and charts.
In the modern times graphs and charts are becoming more popular as a mode of presenting any kind of information. A look at the chart or diagram may enable the reader to have an idea about the information.
These reports have the advantage of quick grasp of trends of information presented. The reports may be presented in the form of charts, diagrams and pictures. Written reporting is the best mode of transmitting lengthy messages without risk of unauthorized alterations. Written reports as can be kept as a legal record also be used as a reference source while taking some important decisions in future. Thus written reports may serve as a statement while taking important decisions in future while formulating various policies.Īccounting ratios used in written reports as a part of formal financial statements may be useful in doing appropriate financial analysis. Written reports are helpful in maintaining important record. Written reports when are presented in tabular form or comparative statements convey comparative information which can be helpful in taking management decisions. This is also known as traditional form of reporting. Generally reports are prepared in a written descriptive form. (ii) In the absence of cost of sales, sales are used for cost of sales for calculating working capital turnover ratio. (i) Since credit sales and purchases are not given, all sales and purchases are taken as credit,
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