AICPA Exam CPA-Financial Topic 1 Question 103 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 103
Topic #: 1

Opto Co. is a publicly-traded, consolidated enterprise reporting segment information. Which of the following items is a required enterprise-wide disclosure regarding external customers?

AThe fact that transactions with a particular external customer constitute more than 10% of the total enterprise revenues.

BThe identity of any external customer providing 10% or more of a particular operating segment's revenue.

CThe identity of any external customer considered to be 'major' by management.

DInformation on major customers is not required in segment reporting.

Show Suggested Answer

Suggested Answer: B

Choice 'b' is correct. $428,000 net of tax.

by Pok at Nov 15, 2024, 01:37 PM

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Nickie

1 months ago

I'm going with A. Can't go wrong with the 10% rule, am I right?

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Leonardo

21 days ago

User 2: Yeah, I agree. It's a safe bet to disclose transactions with customers over 10% of total revenues.

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Goldie

22 days ago

User 1: I think A is the right choice, it's always good to follow the 10% rule.

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Verona

1 months ago

Haha, I bet the exam writers are really hoping no one picks D. That would be way too easy!

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Lavonda

1 months ago

D? Really? Information on major customers is not required? That just seems too good to be true.

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Cordelia

1 months ago

I'm not sure about this one. I thought B was the right answer, but now I'm second-guessing myself.

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Nathan

2 months ago

I think Onita is correct. It makes sense to disclose the identity of customers providing a significant portion of revenue for a specific segment.

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Onita

2 months ago

I disagree, I believe the answer is B) The identity of any external customer providing 10% or more of a particular operating segment's revenue.

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Ma

2 months ago

I think the correct answer is A. The disclosure of external customers contributing more than 10% of total enterprise revenue is a required enterprise-wide disclosure.

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