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.

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2.

The IRS requires companies to file annual tax returns.

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3.

Accountants divide the economic life of a business into artificial time periods, but each transaction affects only one of these periods.

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4.

Accounting time periods are generally a month, a quarter, or a year.

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5.

A time period lasting one year is called an interim period.

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6.

All fiscal years are calendar years, but not all calendar years are fiscal years.

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I think you need to call Fred and ask him.

Otherwise its your homework assignment. Not ours... unless you show us your answers first and why you think they are right. Nobody here will can help you according to the site rules.