E3-1 Jo Seacat has prepared the following list of statements about the time period assumption.

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E3-1 Jo Seacat has prepared the following list of statements about the time period assumption.
1. Adjusting entries would not be necessary if a company’s life were not divided into artificial time periods.
2. The IRS requires companies to file annual tax returns.
3. Accountants divide the economic life of a business into artificial time periods, but each transaction affects only one of these periods.
4. Accounting time periods are generally a month, a quarter, or a year.
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:Identify each statement as true or false. If false, indicate how to correct the statement.