Why do we start with revenues rather than expenses

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Reference no: EM133433705

Question: It all starts with revenue. Even with the new guidance using the five-step approach, aside from multi-year projects like bridges, we recognize a transaction when the earnings process is complete (Goods/title are delivered or services are performed) and in the amount we reasonably expect to collect. Everything else happens from there. Why do we start with revenues rather than expenses?

Reference no: EM133433705

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