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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?
Suggested Answer: B
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Choice 'b' is correct. $428,000 net of tax.
32 comments · newest first
MA
Mari
10 months ago
A and B are both important for transparency.
LA
Lawanda
11 months ago
D seems off, major customers should be disclosed.
DA
Dalene
11 months ago
Surprised that major customer info isn't mandatory!
SE
Selma
11 months ago
I think B is more relevant, though.
HA
Harris
11 months ago
A is definitely required for external customers.
EV
Evangelina
12 months ago
I’m a bit confused about the specifics, but I think the 10% rule is significant in segment reporting, so maybe A is the right choice?
VA
Vanna
12 months ago
I feel like we covered this in class, and I vaguely recall that major customer information isn't always required, which makes me think option D could be correct.
CA
Callie
12 months ago
I think we practiced a similar question where identifying major customers was emphasized, so I might lean towards option B.
TI
Tiera
1 year ago
I remember we discussed that external customer disclosures are important, but I'm not sure if it's about the 10% revenue threshold or the identity of the customer.
AR
Argelia
1 year ago
This is a tricky one. I'm a bit confused about the difference between "external customer" and "major customer" disclosures. I'll need to re-read the question and options carefully.
PE
Pearlene
1 year ago
I've got a good feeling about this one. The wording of the options seems pretty clear, so I'll just need to apply my knowledge of segment reporting requirements.
SO
Soledad
1 year ago
Okay, I think the key here is that the question is asking about an "enterprise-wide" disclosure, not just for a specific segment. So I'll need to think about that in my analysis.
BE
Bette
1 year ago
Hmm, I'm not totally sure about this one. The question is asking about a required disclosure, so I'll need to carefully consider each option.
GA
Gayla
1 year ago
This looks like a straightforward segment reporting question. I'll focus on the key requirements for external customer disclosures.
NI
Nickie
1 year ago
I'm going with A. Can't go wrong with the 10% rule, am I right?
EL
Elenore
1 year ago
User 3: Definitely, it's a standard requirement for enterprise-wide disclosure.
LE
Leonardo
1 year ago
User 2: Yeah, I agree. It's a safe bet to disclose transactions with customers over 10% of total revenues.
GO
Goldie
1 year ago
User 1: I think A is the right choice, it's always good to follow the 10% rule.
VE
Verona
1 year ago
Haha, I bet the exam writers are really hoping no one picks D. That would be way too easy!
LA
Lavonda
1 year ago
D? Really? Information on major customers is not required? That just seems too good to be true.
CA
Cassie
1 year ago
C) The identity of any external customer considered to be 'major' by management.
GA
Gaston
1 year ago
B) The identity of any external customer providing 10% or more of a particular operating segment's revenue.
BL
Blondell
1 year ago
A) The fact that transactions with a particular external customer constitute more than 10% of the total enterprise revenues.
CO
Cordelia
1 year ago
I'm not sure about this one. I thought B was the right answer, but now I'm second-guessing myself.
NA
Nathan
2 years 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.
ON
Onita
2 years 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.
MA
Ma
2 years 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.
SO
Son
1 year ago
I'm not sure, but I think it might be C, the identity of any external customer considered to be 'major' by management.
LU
Luis
1 year ago
I agree with option A, it makes sense to disclose transactions with a customer constituting more than 10% of total revenue.
CA
Carlota
1 year ago
I think it's B, the identity of any external customer providing 10% or more of a particular operating segment's revenue.
GI
Gilbert
1 year ago
I believe the correct answer is A.
JO
Jolanda
2 years ago
I think the answer is A) The fact that transactions with a particular external customer constitute more than 10% of the total enterprise revenues.