FASB 131 (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 a threshold of 10 percent of total revenues is mandated.
D)A local,state,or foreign government can be considered a major customer.

Question

Quizplus · Accepted Answer

The threshold for determining a significant customer is not mandated as a specific percentage by FASB 131 (ASC 280). Rather, the definition of a significant customer is based on the judgement of the reporting entity. Therefore, statement C is false. The other statements are true.

FASB 131 (ASC 280)requires Certain Disclosures About Major Customers