FAR 2.4 - Segment Reporting

Question 1

Which of the following is an entity required to disclose for its segments:
1. Profit or loss
2. Assets
3. Related items
4. Cash flows

Answer 1

Profit or loss, assets, and related items but NOT cash flows

Question 2

Public business entities must report:

Answer 2

Operating segments
Products and services
Geographic areas
Major customers

Question 3

Does segment reporting apply to public, private, or both companies?

Answer 3

Public companies only

Question 4

If any one of revenue, profit or loss, or assets is > 10% of combined total:

Answer 4

It mist be reported

Question 5

If the total of external revenue reported by operating segments constitutes less than 75% of external revenues, then

Answer 5

Additional operating segments need to be identified as reportable segments until at least 75% of external revenue is included in reportable segments

Question 6

An entity thaat generates 10% or more of its revenue from sales to a single customer must disclose:

Answer 6

The total amount of revenues from each customer (that’s 10% or more) and the identity of th segment or segments reporting the revenues