1. The Rivers Co. had four separate operating segments with total sales to outsiders of $526,400 and total intersegment revenue of $123,200. What amount of revenues must be generated from one customer before that party must be identified as a major customer?
$52,640
$64,960
$57,680
$78,960
2. Which of the following is a precondition for an audit?
a. management has used an acceptable financial reporting framework
b management has used GAAP for its financial reporting framework
c. management cannot have any responsibility for designing any internal controls
d. all of the above