Reference no: EM132789526

Groom Company, a publicly owned entity, is subject to the requirements of segment reporting. In the income statement for the year ended December 31, 2018, the entity reported revenue of P50,000,000, excluding intersegment sales of P10,000,000, expenses of P47,000,000 and net income of P3,000,000. Expenses included in payroll costs of P15,000,000. The combined identifiable assets of all operating segments on December 31, 2018 totaled P40,000,000.

Problem 1: In the financial statements, the entity should disclose major customer data if sales to any single customer to at least

a. 5,000,000

b. 4,000,000

c. 6,000,000

d. 4,700,00

Problem 2: External revenue of reportable operating segments must be at least

a. 22,500,000

b. 30,000,000

c. 33,750,000

d. 37,500,000