FASB 131 Requires Certain Disclosures About Major Customers

question 41

Multiple Choice

FASB 131 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.

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Definitions:

Stock B

Typically a classification indicating a type of stock with specific rights or characteristics, such as differing voting rights from Stock A in the same company.

Market Risk Premium

The extra profit an investor is aiming for by choosing to invest in a market portfolio that carries risk instead of opting for assets devoid of any risk.

Government Bond

A type of investment where an investor loans money to a government in exchange for periodic interest payments plus the return of the bond's face value at maturity.