Exam FAR Topic 1 Question 99 Discussion

Actual exam question for AICPA's FAR exam
Question #: 99
Topic #: 1
The following information pertains to Aria Corp. and its divisions for the year ended December 31, 1988:

Aria and all of its divisions are engaged solely in manufacturing operations. Aria has a reportable segment
if that segment's revenue exceeds:

Suggested Answer: B Vote an answer

Choice "b" is correct. $260,000 represents a reportable segment (10% of total sales):

Rule: To be significant enough to report on, a segment must be at least 10% of:
1 . Combined revenues (whether intersegment or unaffiliated customers), or
2 . Operating income, or
3 . Identifiable assets.

by Lionel at Nov 06, 2025, 04:18 AM

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