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AICPA Exam CPA-Financial Topic 3 Question 63 Discussion
Actual exam question for
AICPA's
CPA Financial Accounting and Reporting exam
Question #: 63
Topic #: 3
[All CPA Financial Accounting and Reporting Questions]
Topic #: 3
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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