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:

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Cultural Beliefs

The shared values, norms, and practices that are common within a particular group, society, or community, influencing behavior and perceptions.

Empathy

The ability to understand and share the feelings of another, crucial for effective communication and relationship building.

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A framework that describes how individuals interact and exchange information within a social context.