How does code coverage work? [closed]

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Specifically, what is contained inside code coverage data (.nccov or xml file) and how is an html report generated by this? Does the coverage data not include the actual percentage of code covered? Is this only generated when the report is made from the coverage data? Is the coverage data sort of a guideline for the reporting process? Do coverage files need access to assemblies to create a report?

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Specifically, what is contained inside code coverage data?

Code coverage data is used to determine how effectively your tests exercise the code in your application. This data helps you to identify sections of code not covered and sections of code partially covered by your tests, as well as sections of code where you have complete coverage. With this information, you can add to or change your test suites to maximize their effectiveness.

Does the coverage data not include the actual percentage of code covered ?

Yes, it does show the percentage of the code that was run in each assembly, class, and method.

Do coverage files need access to assemblies to create a report?

Yes.

Also, check the MSDN for any other related queries.