The Old Way of Calculating Profit is Inefficient and Illogical - The Profit Formula® is a New and Better Way

24 Pages Posted: 23 Feb 2003 Last revised: 10 Jun 2016

Date Written: January 14, 2003

Abstract

An asset is a name with a value on a line of the balance sheet. No more, no less. The existing profit calculation systems make an arithmetical difference between, for instance, non-monetary fixed assets and other assets, which is in flat contradiction with a logical approach. By doing so, profit calculation has been made intricate, and it thereby costs a lot of time, effort and money and what is found in the end doesn't justify this. With The Profit Formula® counting and calculating are reduced to an absolute minimum via a direct way to the outcome. A tremendous amount of money can be saved with regard to administration and fringe costs, also in case of pure nominalism.

Keywords: Trading Profits, Holding Gains, Principles, Conventions, Capital Maintenance Concepts and Concepts of Value, There is no such thing as a free machine

JEL Classification: M41

Suggested Citation

Jacobs, Jan F., The Old Way of Calculating Profit is Inefficient and Illogical - The Profit Formula® is a New and Better Way (January 14, 2003). Available at SSRN: https://ssrn.com/abstract=369544 or http://dx.doi.org/10.2139/ssrn.369544

Jan F. Jacobs (Contact Author)

Independent ( email )

Beethovenlaan 36
Enschede, Overijssel 7522 HJ
Netherlands

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