That happens in any technical field
Actually I think that's a dangerous way of thinking. Yes, it's perfect MBA-speak. But normal humans think in terms of income, expenses and assets as different things.
That happens in any technical field. Theory, temperature, and OS all have somewhat different meanings to people inside that field that is at odds with the common meaning.
When you combine the two and talk about "net income" you make it look like your had a better month, when your didn't really have any more money coming in the door.
Your right, but I think it's a far more fundamental point then that. Half of what modern companies do is manipulating the accounting. The modern corporation and it's dependence on finance means that actual cash flow is almost incidental. Your borrowing money based on potential future cash flow to pay for operating and expanding the business right now. When it comes time to pay the loan, you take out another bigger loan. The goal is to expand fast enough that you can always justify a bigger loan.
A significant part of our current crisis is that cycle reaching it's limit. The businesses went to the banks, who said "We would like to but there is no more money. We can't loan anybody anything until somebody pays us back." And the businesses are looking at the banks going "We would like to but there is no cash, we can't pay anybody until we get some loans." Literally, part of what the government is doing is giving the banks enough money so they can start making loans again.
Jay