ASC 280 Requires Certain Disclosures About Major Customers

question 41

Multiple Choice

ASC 280 requires certain disclosures about major customers.All of the following statements about those disclosures are true with the exception of which statement?

• A) The identity of the segment reporting the revenue from a significant customer must be disclosed a footnote.
• B) The amount of revenue from a significant customer must be disclosed in a footnote.
• C) For applying the disclosure test a threshold of 10 percent of total revenues is mandated.
• D) A local, state, or foreign government can be considered a major customer.

Comprehend non-cash investing and financing activities and their disclosure requirements.

Analyze the impact of specific transactions and events on the financial position and cash flows of a company.

Understand how to calculate the effective annual rate for different compounding frequencies.

Recognize and explain the concept of kurtosis in distribution.

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Definitions:

Normal Goods

Goods for which demand increases as the income of the consumer increases, and vice versa.

Substitutes

Products or services that can be used in place of each other, having the ability to satisfy similar consumer needs or preferences.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a given time period.

Coca-Cola

A multinational beverage corporation known for its flagship product, a carbonated soft drink named after the brand.