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Finance - Coggle Diagram
Finance
Financial documents
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delivery note
: completed by buyer
:sent to customer when goods delivered
:list details about the order, including content of delivery.
purchase oder
.completed by buyer
:a legal offer to buy goods from supplier
:list items required, including prices and quantity.
Profit and loss
Profit
A financial gain, especially the difference between the amount earned and the amount spent in buying, operating, or producing something.
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Making a loss
An enterprise will need to take action if it makes a loss.
.Gross profit can be improved by increasing the volume of sales, reducing the cost of sale or increasing the price of products.
.Net profit can be improved by reducing expenses.
Calculating profit or loss
Using the statement of comprehensive income, to calculate if an enterprise has made a profit or a loss, use this formula:
Gross profit = Sales revenue - Cost of sales Net profit (or loss) = Gross profit - Expenses
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