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3 years ago

How gross profit or loss is calculated

Business

1 answer:

vampirchik [111]3 years ago

8 0

Answer: See explanation

Explanation:

The Gross Profit for a company simply refers to the income that a particular company has left after the company has paid it's direct expenses that was incurred during production.

The formula to calculate the gross profit is:

Gross Profit = Revenue – Cost of Goods Sold.

In a case whereby the cos of goods sold is more than the revenue, we will get a gross loss.

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Sally Smith incurred expenses of $800 in June which she paid in July. She declared these expenses on her June income statement.

Nitella [24]

Answer:

Accrual

Explanation:

The accounting principle of accrual means that you should register something when the fact that origins the right for the future payment/collecting occurs. It does not matter if the payment is done later, the fact that made you to pay was already done, so we apply accrual and say we already owe that money that we pay later.

In this example, Sally used the principle of accrual for the things in June that she later paid in July... but her expenses were origined in June, so they apply to June.

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2 years ago

What are the implications in formal communication to managers at a workplace

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2 years ago

Internal Environmental Analysis

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The analysis that you have been asked to examine is called SWOT Analysis. See the categorization below.

<h3>What is SWOT Analysis?</h3>

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Strength

• Adequate Financial Resources

• Proven Management Skills

• Ahead of the Experience Curve

• Diversify into Related Products

• Enter New Markets or Segments

• Proprietary Technology

• Vertical Integration

• Product Innovation Skills

• Well Thought of by Buyers

Weaknesses

• Too Narrow a Product Line

• Unable to Finance Needed Strategy Changes

• Falling Behind in R & D

• Vulnerability to Recession & Business Cycle

• Poor Track Record in Implementing Strategy

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Opportunities

• Complacency Among Rival Firms

• Falling Trade Barriers in Attractive Foreign Markets

• Serve Additional Customer Groups

Threats

• Rising Sales of Substitute Products

• Issues Costly Regulatory Requirements

Learn more about SWOT at;
brainly.com/question/20350382
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2 years ago

How gross profit or loss is calculated​

How gross profit or loss is calculated