Multiple choice

1.  Because accounting often requires estimates to be made to assess the effect of a transaction, the shorter the time period, the easier it becomes to determine the proper adjustments. 

True

False

 2.  The time period assumption states that the economic life of a business entity can be divided into artificial time periods. 

True

False

 3.  The time period assumption is often referred to as the matching principle. 

True

False

 4.  A company's calendar year and fiscal year are always the same. 

True

False