A Slice of the Pie Financial Statements
Pie and bar graphs are two different types of graphs that display numerical data. Both types of graphs have their pros and cons, so it’s important to choose the right one for your data.
A pie chart is a circular chart divided into slices to illustrate numerical proportion.
Pie charts are used to show proportions of a whole. They’re most effective when dividing data into only two or three categories, but can also be used with more than four pieces if the labels are small enough to fit in the center of each sector.
Pie charts are best for showing percentage increases or decreases over time; however, they don’t do well with large numbers since it’s difficult to see how much one slice represents in relation to another.
A bar chart is a rectangular chart that illustrates numerical data by displaying the height of bars, which are typically horizontal but may be vertical.
A bar chart is a rectangular chart that illustrates numerical data by displaying the height of bars, which are typically horizontal but may be vertical. Bar charts are best for comparing numbers over time, or grouped into categories or classes. For example, you might use a bar graph to show sales figures for each month of the year in your business’s annual report.
Bar graphs can also be used to show the number of items in each category (for example: how many cars were sold by make) – but it’s important not to confuse this kind of … More >>>