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Sep 3, 2015, 04:38 PM
Exercise 3-1Fred Mosure has prepared the following list of statements about the time assumption.
Identify each statement as true or false.
1.
Adjusting entries would not be necessary if a company’s life were not divided into artificial time periods.
http://edugen.wileyplus.com/edugen/art2/common/pixel.gif TrueFalse
2.
The IRS requires companies to file annual tax returns.
http://edugen.wileyplus.com/edugen/art2/common/pixel.gif TrueFalse
3.
Accountants divide the economic life of a business into artificial time periods, but each transaction affects only one of these periods.
http://edugen.wileyplus.com/edugen/art2/common/pixel.gif TrueFalse
4.
Accounting time periods are generally a month, a quarter, or a year.
http://edugen.wileyplus.com/edugen/art2/common/pixel.gif TrueFalse
5.
A time period lasting one year is called an interim period.
http://edugen.wileyplus.com/edugen/art2/common/pixel.gif TrueFalse
6.
All fiscal years are calendar years, but not all calendar years are fiscal years.
http://edugen.wileyplus.com/edugen/art2/common/pixel.gif TrueFalse
Identify each statement as true or false.
1.
Adjusting entries would not be necessary if a company’s life were not divided into artificial time periods.
http://edugen.wileyplus.com/edugen/art2/common/pixel.gif TrueFalse
2.
The IRS requires companies to file annual tax returns.
http://edugen.wileyplus.com/edugen/art2/common/pixel.gif TrueFalse
3.
Accountants divide the economic life of a business into artificial time periods, but each transaction affects only one of these periods.
http://edugen.wileyplus.com/edugen/art2/common/pixel.gif TrueFalse
4.
Accounting time periods are generally a month, a quarter, or a year.
http://edugen.wileyplus.com/edugen/art2/common/pixel.gif TrueFalse
5.
A time period lasting one year is called an interim period.
http://edugen.wileyplus.com/edugen/art2/common/pixel.gif TrueFalse
6.
All fiscal years are calendar years, but not all calendar years are fiscal years.
http://edugen.wileyplus.com/edugen/art2/common/pixel.gif TrueFalse