a. How does the time period assumption affect an accountants
analysis of business transactions?
b. Explain the terms fi scal year, calendar year, and interim periods.
2. Define two generally accepted accounting principles that relate to
adjusting the accounts.
3. Susan Hardy, a lawyer, accepts a legal engagement in March,
performs the work in April, and is paid in May. If Hardys law firm
prepares monthly financial statements, when should it recognize
revenue from this engagement? Why?