ACCA Applied Knowledge · Management Accounting · Spreadsheets
A line graph of quarterly sales has a vertical axis starting at 9,000 rather than zero, and the sales range from 9,200 to 9,800. What is the main presentation risk?
The main risk is that small changes look visually exaggerated. Starting the vertical axis at 9,000 rather than zero stretches the differences between points, so a modest movement appears dramatic and may mislead readers, although the underlying data and trend remain unchanged.
- ASmall changes appear visually exaggeratedCorrect
- BThe trend cannot be identified at all
- CSeasonal variations are removed from the data
- DThe graph will show percentages instead of values
Explanation
A truncated axis magnifies small differences, so a change of about 6% can look like a large swing. The data and trend remain, and no seasonal adjustment occurs. Axis choice does not convert values to percentages.
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