What Information Does U

question 85

Multiple Choice

What information does U.S. GAAP require to be disclosed for a major customer?

• A) The identity of the customer.
• B) The operating segment reporting sales to the customer.
• C) The geographic area of the customer.
• D) The percentage of sales derived from the customer.
• E) The length of time the customer has been a customer of the company.

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Definitions:

Non-inventory

Refers to items or services sold by a business that are not kept in inventory, such as consulting services.

Allowance Method

An accounting technique used to estimate and account for doubtful accounts receivable.

Uncollectible Accounts Expense

An expense reported on the income statement, pertaining to the debt owed to a company that is unlikely to be recovered.

Percentage Of Credit Sales

A method used to estimate bad debts expense, based on the percentage of sales made on credit that are expected to be uncollectible.