Word Corporation, a publicly owned corporation, is subject to the requirements for segment reporting. In its statement of comprehensive income for the year ending July 31, 2021, Word reported revenues of $50M, operating expenses of $47M and net income of $3M. Operating expenses included payroll costs of $15M. Word’s combined assets of all segments at July 31, 2020 were $40M. In its 2021 financial statements, Word should disclose major customer data if sales to any single customer amount to at least _____________________. A. $ 300,000 B. $1,500,000 C. $4,000,000 D. $5,000,000
Word Corporation, a publicly owned corporation, is subject to the requirements for segment reporting. In its statement of comprehensive income for the year ending July 31, 2021, Word reported revenues of $50M, operating expenses of $47M and net income of $3M. Operating expenses included payroll costs of $15M. Word’s combined assets of all segments at July 31, 2020 were $40M. In its 2021 financial statements, Word should disclose major customer data if sales to any single customer amount to at least _____________________. A. $ 300,000 B. $1,500,000 C. $4,000,000 D. $5,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Word Corporation, a publicly owned corporation, is subject to the requirements for segment reporting. In its statement of comprehensive income for the year ending July 31, 2021, Word reported revenues of
$50M, operating expenses of $47M and net income of $3M. Operating expenses included payroll costs of $15M. Word’s combined assets of all segments at July 31, 2020 were $40M. In its 2021 financial statements, Word should disclose major customer data if sales to any single
customer amount to at least _____________________.
A. $ 300,000
B. $1,500,000
C. $4,000,000
D. $5,000,000
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