Accounting Information Systems

There are a number of charts that I often use to help me analyze certain data. For instance, I use the column chart when I am trying to compare the revenue received from different streams. An example would be in a bakery, there are various items. The vertical axis would show the revues, whilst the y axis would have the various products. This column chart would show which products are brining in the most revenue and the ones brining in the least. I use the column charts when the items I am comparing are not many, as too many of them would congest the chart. A stacked column chart is also another chart I have used. It is used to show how different shops mix a product, the make up of a product is represented in the stacked column. These two have been helpful in the analysis of financial information. 

Charts are many and can be useful in different scenarios or circumstances. According to Eastern Michigan University (N.D), charts that can be useful in financial accounting are; bar graphs, pie charts, scatter plots and line graphs. Bar graphs have different variations, namely; three dimensional, stacked and clustered column. The three dimensional chart is useful in the comparison of three sets of data, which are believed to work in a simultaneous fashion. The stacked bar chart helps show the make up of a product or item. A clustered column chart helps with the comparison of various data series found in a bracket. A pie chart shows the percentages of different components which make up a whole. This type of chart helps create a visual of what the make up of something is. Scatter charts are useful for distribution and correlation analysis. They are helpful in determining the relationship between different variables that work simultaneously. Lastly, line graphs, these are a blend of the bar graph and scatter plot. They are beneficial in comparing how two types of continuous data are related. All these charts can be helpful in comparing costs, comparing revenue, sales in years and the make up of revenue which is all financial information. 

References 

Eastern Michigan University (N.D). Charting and Graphing Tips. https://www.michiganseagrant.org/lessons/teacher-tools/charting-and-graphing-tips/