1. Accrual basis accounting requires that expenses be recognized when incurred r

1. Accrual basis accounting requires that expenses be recognized when incurred regardless of when paid.TrueFalse2. The revenue recognition principle dictates that revenue be recognized in the accounting period in which cash is received.TrueFalse3. Monthly and quarterly time periods are calleda. calender periods.b. fiscal periods.c. interim periods.d. quarterly periods.4. The time period assumption states thata. a transaction can only affect one period of time.b. estimates should not be made if a transaction affects more than one time period.c. adjustments to the enterprises accounts can only be made in the time period when thebusiness terminates its operations.d. the economic life of a business can be divided into artificial time periods.