📏CPA EXAM PREP

Public Company Reporting and Segments

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Question

Why is the 75% test applied after the 10% tests?

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Answer

To ensure reportable segments cover at least 75% of external revenue.

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Question

Why do significant-subsidiary tests matter under Regulation S-X?

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Answer

They determine whether separate and pro forma statements are required.

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Question

What is the purpose of XBRL in SEC reporting?

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Answer

It makes financial data machine-readable for automated analysis.

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Question

Why does the SEC require Inline XBRL for filings?

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Answer

It embeds tagged data in the human-readable filing.

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