Line graphs, which can convey a large amount of information in an easily understood format, are used mainly to demonstrate trends over a period of time. Microcomputer graphics software packages are available for accountants wishing to present proposals, management letters, and long-form reports in graphical form. Graphs reach out and seize the reader's attention. People tend to perceive and retain graphic information more quickly and easily than narrative discussion or numerical tabulation. The unique communication ability of graphics makes the well designed graph an effective communicator that can be adapted to many uses in a CPA's practice.
Graphs are effective because they are easily understood by both financial and nonfinancial people.
When large amounts of data are presented in a graph, the essence can be grasped more quickly. Graphic presentation of trends, sequences and relationships takes less space than words and reduces the time needed to absorb data. Graphs allow the writer to select significant relationships for emphasis. They can expand the reader's perception by providing a formed picture. Graphs can both emphasize the significance of known relationships and illustrate relationships otherwise difficult to perceive.