Note: This is a Kaplan CPA Review Question
Grum Corp., a publicly-owned corporation, is subject to the requirements for segment reporting. In its income statement for the year ended December 31^st, Grum reported consolidated revenues of $50,000,000, operating expenses of $47,000,000, and net income of $3,000,000. Operating expenses include payroll costs of $15,000,000. Grum's combined identifiable assets of all industry segments at December 31^st, were $40,000,000. In its year-end financial statements, Grum would be most likely to disclose major customer data if sales to any single customer amounted to at least:

Question

Quizplus · Accepted Answer

According to segment reporting requirements, a company must disclose information about major customers if sales to a single customer are 10% or more of the company's total revenues. In this case, 10% of $50,000,000 is $5,000,000.

Note: This Is a Kaplan CPA Review Question