BUS 230 Sample Exam 1 (Ch. 1,2, 4, & 5) Summer 2020 Name: Chapter 1 1. Financial accounting is information is important because it is used to do all of the following except: A. Calculate the taxes to be paid to the IRS B. Presented to potential investors of the company C. Presented as documentation to banks for loan applications D. Used by management to establish financial goals 2. This type of accounting is used more to make internal managerial decisions and is not often publicly presented to outsiders: A. Financial accounting B. Tax accounting C. Managerial accounting D. Accrual accounting 3. Independent auditors, as it relates to financial accounting, are important because: A. They serve as an external body that can hire or fire management B. Help establish the company's internal controls C. Help translate the financial accounting data into tax data to be submitted to the IRS D. They attest to the fact that the financial statements are prepared in accordance to the rules established by the Financial Accounting Standards Board (FASB) 4. Accounting rules, prepared by FASB, to be followed by public corporations are known as: A. International Accounting Standards (IAS) B. Generally Accepted Accounting Principles (GAAP) C. Accepted Accounting Procedures (AAP) D. Public Company Accounting Principles (PCAP)