It is well known that peripheral nerves do not conduct electrical signals well after transection. It is also well known that on many instances, neuronal reconstructive surgery produces poor results in functional recovery. Before further advances in neuronal recovery can be achieved, researchers must understand the electromagnetic activity of a transected nerve segment. We used a volume conductor model to determine the electric potential and magnetic field of a transected nerve segment. This paper will establish that the truncation of the distal electric potential and magnetic field is related to the ratio of surface area-to-volume of the proximal and distal nerve segments.