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Check your answers at the end of the chapter. ASSESS YOUR PROGRESS > Review Questions 1. What is the difference berween cash basis accounting and accrual basis accounting? 2. Which method of accounting (cash or accrual basis) is consistent with Generally Accepted Accounting Principles? 3. Which accounting concept or principle requires companies to divide their activities into small time segments such as months, quarters, or years? 4. What is a fiscal year? Why might companies choose to use a fiscal year that is not a calendar year