Graphs may be defined as the visual displays which can be helpful in expressing the quantitative data and the relations with the help of the combinations of some of the abstract marks. The graphs which are used in different annual reports may serve the purpose related to the communication of the important financial information. Graphs are much better in comparison to the tables as they can give the proper and the visual highlight of the trends which may be there between the different values. Other than this, the color which is there in the graphs helps in the improvement of the accuracy of information in terms of the learning task.
The most important focus of the report is to give the essential information in the completely true and the fair manner regarding the performance of the company. In order to serve the interest of the users, the academic literature had been documented for the incentives related to the creation of the favourable performance of the company. Some of the examples of these practices may include the process of earning management, the misuse of the photographs and the graphs.