Profit and cash do not move on the same dates

A fictional enterprise reports revenue for completed sales but has not collected several invoices. It purchases equipment partly with a loan and receives a customer deposit for work not yet performed. A manager calls every bank deposit profit and assumes a positive annual income result proves every next bill can be paid on time. The estimate also includes a contingency that the manager treats as permission to change the contract without consultation. The exercise asks for the differences among assets, borrowing, revenue, expenses, cash timing and scope approval. It supplies no jurisdiction-specific tax ruling, accounting mandate or guarantee that the enterprise will be profitable.