Yup, the game spawns a projectile for each bullet, as I recall, from the tip of the weapon, in the direction it is pointing. There is a ballistics algorithm that figures out distance travelled and drop between each tick, so that the round travels along a series of points that closely approximates the actual curve - watch a tank round in flight and you it will seem to fly on a nice curve at long ranges.
If I remember right (and as Yoshi says, Ramm is the guru wot built the system) the engine does checks each tick on where it would travel in a direct straight line - we had issues in testing with high-velocity tank rounds being one side of a tank one tick and the other side next tick, so appearing to pass right through without hitting.
Anyway - in answer to the bsaic question: all projectiles (bullets, tank rounds, rocketry) are individually calculated and follow a correct ballistic path (assuming we have the correct MV and BC data for each round, which can be a little tricky to calc!). For the mad detail, hunt for Ramm's detail post somewhere back in the mists of time!