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If you want to take an indepth look at reporting, the process, and the situations to report, you can read through @Welsh’s guide on the matter:
[Guide] Reporting effectively.
You do not have to pay too much to your personal reporting stats (number of reports, % accuracy, good/bad/unhandled), since the benefit for all normally will outstand a personal ratio such as accuracy.
An interesting perk is that, once you get make 300 good reports, you get to see a your personal reporting history, allowing you to see the report status of the last 40 or so reports (until then, you will not be able to know which specific ones have been marked with what status – only your overall scores).
Consequences to the reported account may vary from nothing happening, post/thread deletion, temporal ban and permanent ban.