Stone Company reported $100,000,000 of revenues on its 2008 income statement.During the year ended December 31,2008,Stone made sales of $8,000,000 to external customers in Western Europe.In addition,Stone made sales of $10,000,000 to the U.S.government and $4,000,000 of sales to various state governments.In the footnotes to its financial statements for 2008,in reporting enterprisewide disclosures,Stone is required to disclose:
A)Option A
B)Option B
C)Option C
D)Option D

Question

Quizplus · Accepted Answer

Stone is required to disclose the amount of its sales to external customers in Western Europe because this information is material to understanding the company's financial performance. The sales to the U.S. government and state governments are not required to be disclosed because they are not considered to be external sales.

Stone Company Reported $100,000,000 of Revenues on Its 2008 Income