Accounting - Presentation
It is recommended that you use graphs to improve presentation and
understanding of information. This presentation may be assisted by computer
programs. They may be interspersed between paragraphs as they become
relevant to the particular accounting task. There is no doubt graphs add to
the report and help the explanation. I would further recommend the use of
graphs when carrying out trend analysis. The plotting of a series of
graphs over several years for each of the profitability measures may
more clearly show changes in profitability.
The problem with using graphs is that you will often rely on the graph
alone. While this does identify the change which has taken place it does
not necessarily show the amount involved. To fully satisfy the particular
criteria you may have to explain why the change has taken place.
The use of horizontal and vertical variance analysis is encouraged.
Like graphs they tend to focus your response, however, they share the
common problem with graphs, of identifying but not explaining.
It is very important that you support graphs with an explanation. You are
invariably required to give 'reasons for the change'. It is also important
to note that 'the reasons must be relevant to the hypothetical business'.
Reasons will be found in the data and in the preamble provided by the task.
A preamble is preliminary information.
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