State what do you understand by accounting reports?
An accounting report is basically the physical form of accounting information. Accounting Reports are reports which display information that is acquired from data processing and transformed in an organised manner. Here it is worth mentioning that a report is prepared with a definite objective.
Every report is a collection of related information for a particular need and purpose and must meet the twin objectives of reporting; First to reduce the level of uncertainty that is faced by a decision maker; second to influence the behaviour (or positive actions) of the decision maker.
Reports can be classified into two broad categories.