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Santos Vasquez has prepared the following list of statements about the time period assumption.
1. Adjusting entries are necessary only if a company has made accounting errors.
2. The IRS requires companies to file annual tax returns.
3. Accounting periods cannot be shorter than a quarter.
4. One transaction can affect several accounting periods.
5. A time period lasting one year is called an interim period.
6. All fiscal years are calendar years, but not all calendar years are fiscal years.
Instructions
Problem 1: Identify each statement as true or false. If false, indicate how to correct the statement
Financial Statement Analysis and Preparation
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