ASC 280 Requires Certain Disclosures About Major Customers

question 60

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,there is no specific threshold (percent of total revenues)that is defined as "significant".
• D)A local,state,or foreign government can be considered a major customer.

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Definitions:

Net Income

Refers to the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Dividends

Dividends are the portion of profit a company decides to distribute to its shareholders, often on a regular basis.

Equity

The value of an asset after deducting the cost of liabilities, representing the owner's interest in a company.

Investing Activities

Investing activities are financial transactions related to the acquisition or disposal of long-term assets and other investments not considered cash equivalents, as detailed in the statement of cash flows.