Earlier quoted context omitted.
"Revenue is calculated by multiplying the price at which goods or services are sold by the number of units or amount sold." - Investopedia You may be thinking of 'marginal revenue' perhaps. I am talking to both of you. Tell me to read an accounting book - sure, if I have time after I am done buying a basket of financial sector out-of-the-money put options for the boutique hedge fund I manage this morning, I will be s…
I'm very happy that you can buy baskets of financial sector out-of-money put options for boutique hedge funds and still find time to use Google. However, you are still wrong. In accounting, revenues are not the same as cash. A revenue event may be committed to the books well in advance of cash changing hands, and indeed the first step for most revenue is to be entered into accounts receivable. What we are discussing…
Just go back and read the entire first sentence that you continue to quote: "Revenue is also cash - before expenses [they are collecting this amount]. I'm not suggesting that Groupon's 'operations activities' aren't responsible for pulling/keeping them in the red."
... clearly not a Merriam-Webster quote - rather my own; to describe a simple concept: Groupon makes money (see definitions: USD; cash) - potentially, these resources could be spent more efficiently.
In regards to Mark-to-Market Accounting, an simple example could be for when a journal entry is made in/debit to 'Accounts Receivable' - you're right, this has not effect on the cash balance.
So your point is valid, but contradictory. Because amounts under ‘Accounts Receivables’ are not considered revenues – assets (maybe, but still not exactly) - but certainly they cannot be called revenues. As receivables are earned, they are transferred to 'Cash,' under assets and now it’s both a revenue and cash.
Also, companies rarely sit on receivables. Instead, they factor them (or borrow against them) and "Voilà!"... cash!
The majority of business owners believe they can invest these amounts and make a higher return than they are being charged in interest.
That all being said, I think your point there isn't very strong.