Investigation of the efficiency and effectiveness of graphic shapes as an alternative communication format in providing accounting information

Little attention has been yet paid by Iranian researchers in accounting to improving the communicative ability of financial statements. This research aims to know the reaction of users of financial statements by analyzing their speed and accuracy (efficiency and effectiveness) in interpreting the accounting information about company’s profitability, liquidity, and leverage using schematic faces format presentation compared to conventional formats such as financial ratios. According to the findings of the first hypothesis, the average time required for the analysis of financial statements using schematic figures, was about 29% of analysis time using financial ratios. The results of the second hypothesis suggests that subjects using schematic forms in 96% of cases and using financial ratios in 83% of cases have been achieved in decision-making. As a result, users of financial statements on average spend a shorter time (performance) and greater accuracy (effectiveness) in the interpretation of accounting information on profitability, liquidity and leverage, by using schematic figures compared to traditional forms of analysis information such as financial ratios and also have Zmijewski's bankruptcy model.