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AICPA CPA-Financial Exam - Topic 3 Question 63 Discussion

Posted by Cheryl on Dec 28, 2022 at 06:02 PM

The following information pertains to Aria Corp. and its divisions for the year ended December 31, 1988:

Aria and all of its divisions are engaged solely in manufacturing operations. Aria has a reportable segment if that segment's revenue exceeds:

Suggested Answer: B

Choice 'b' is correct. $260,000 represents a reportable segment (10% of total sales):

Rule: To be significant enough to report on, a segment must be at least 10% of:

1. Combined revenues (whether intersegment or unaffiliated customers), or

2. Operating income, or

3. Identifiable assets.


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13 comments · newest first
TI
Tien 11 months ago
Yep, $260k is correct!
RE
Remona 11 months ago
I thought it was lower, like $200k.
JO
Joana 12 months ago
Wait, are we sure about that? Seems a bit high.
DE
Derrick 12 months ago
Totally agree, it's definitely $260k!
TH
Thersa 12 months ago
The threshold for a reportable segment is $260,000.
WA
Walker 1 year ago
I thought it was $204,000 based on some examples we went over, but I could be mixing it up with another topic.
SH
Shoshana 1 year ago
I feel like the answer might be $260,000 since it seems like a common figure for segment reporting.
KI
Kizzy 1 year ago
I remember practicing a similar question where the limit was $200,000, but I can't recall if that applies here too.
AL
Alva 1 year ago
I think the threshold for reportable segments is around $250,000, but I'm not sure if it's exactly that.
DE
Derrick 1 year ago
Hmm, I'm a bit confused here. The question is asking about preventing the DRother routers from participating, but I'm not sure which command would accomplish that. I'll need to review my OSPF knowledge to figure this out.
SH
Shonda 1 year ago
Event Viewer is definitely the way to go here. That's where you'll find the most comprehensive information about system errors.
JO
Jordan 1 year ago
I've got this one! Defect density is the ratio of the actual defects found to the expected total number of defects in the system. That means option C is the right answer.
IS
Isadora 1 year ago
I'm a little confused on this one. I know Ishikawa diagrams have something to do with quality management, but I can't recall the exact purpose. I'll have to make an educated guess and go with A, but I'm not 100% certain.
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