What is the threshold for reporting a major customer?
A)5 percent of revenues
B)5 percent of profits
C)10 percent of revenues
D)10 percent of profits

Question

Quizplus · Accepted Answer

The threshold for reporting a major customer is normally set at 10 percent of revenues. Reporting major customers is crucial for maintaining transparency and monitoring potential risk factors. It is important to report not just the customer's contribution to revenue but also any potential risks related to the customer's financial stability or changing market conditions. This helps the company to assess the potential impact on their financial performance and take appropriate steps to mitigate those risks.

What Is the Threshold for Reporting a Major Customer