Note: This Is a Kaplan CPA Review Question

question 28

Multiple Choice

Note: This is a Kaplan CPA Review Question
Grum Corp., a publicly-owned corporation, is subject to the requirements for segment reporting. In its income statement for the year ended December 31^st, Grum reported consolidated revenues of $50,000,000, operating expenses of $47,000,000, and net income of $3,000,000. Operating expenses include payroll costs of $15,000,000. Grum's combined identifiable assets of all industry segments at December 31^st, were $40,000,000. In its year-end financial statements, Grum would be most likely to disclose major customer data if sales to any single customer amounted to at least:

• A) $1,500,000
• B) $300,000
• C) $5,000,000
• D) $4,000,000

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Definitions:

Buildup of Resistance

The gradual increase in opposition or pushback against a particular idea, change, or directive.

Sense of Continuity

The perception or belief in the ongoing, uninterrupted existence or operation of something.

Sacrifices

The act of giving up something valued for the sake of something else regarded as more important or worthy.

Outsourced

The practice of having certain job functions or tasks performed by external parties or contractors instead of in-house personnel.