AICPA CPA-Financial Exam - Topic 3 Question 63 Discussion

Actual exam question for AICPA's CPA-Financial exam

Question #: 63
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:

A$264,000

B$260,000

C$204,000

D$200,000

Show Suggested Answer

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.

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

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Tien

5 months ago

Yep, $260k is correct!

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Remona

5 months ago

I thought it was lower, like $200k.

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Joana

6 months ago

Wait, are we sure about that? Seems a bit high.

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Derrick

6 months ago

Totally agree, it's definitely $260k!

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Thersa

6 months ago

The threshold for a reportable segment is $260,000.

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Walker

6 months ago

I thought it was $204,000 based on some examples we went over, but I could be mixing it up with another topic.

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Shoshana

6 months ago

I feel like the answer might be $260,000 since it seems like a common figure for segment reporting.

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Kizzy

6 months ago

I remember practicing a similar question where the limit was $200,000, but I can't recall if that applies here too.

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Alva

6 months ago

I think the threshold for reportable segments is around $250,000, but I'm not sure if it's exactly that.

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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.

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Shonda

6 months ago

Event Viewer is definitely the way to go here. That's where you'll find the most comprehensive information about system errors.

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Jordan

6 months 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.

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Isadora

6 months 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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