Islamic Accounting

Which of the following statements is not CORRECT about Islamic Capital Market?

• It plays a vital role in attracting savings
• it ensures efficient resource mobilisation and allocation.
• It directly affects the supply of funds for investment.
• It provide short term equity and debts instruments only.

The followings are the benefits of sukuk EXCEPT

• It provide avenue to source for large funding.
• It can be traded in the secondary market for liquidity need.
• It provide source of funding for corporate and government.
• It provide risk free investment vehicle to the investors.

The following are category of objectives of Shari’ah EXCEPT

• Essentials (Daruriyat)
• Donation (Tabarru’at)
• Embellishments (Tahsiniyyat)
• Complementary (Hajiyyat)

Accounting for for Islamic Finance is all about the following EXCEPT

• Initial Measurement and Recognition of transactions.
• Subsequent measurement and de-recognition of transactions.
• Presentations and disclosures of transactions.
• Accounting according to AAOIFI standards.

Murabahah Financing is a Show answers

• Liability to Islamic banks
• liability to the customer
• Asset to the customer
• Qausi-equity to the customer

Mudarabah capital is initially measured at

• fair value
• impaired value
• historical cost
• historical cost net of losses

The following statements about Ijarah investment assets are correct EXCEPT

• must be depreciated
• can be adjusted as acid test ratio calculation
• must be tested for impairment annually
• can be treated as potential rental income

wrong about wealth subjected to zakat

• gold and silver
• agricultural produce
• livestock
• livefb

The rate of zakat on business, as determined by National Fatwa Council, is ..... of zakat base

• 1/4
• 1/3
• 2.5%
• 25%

Zakat on Shares Must be owned for at least 1 year (haul)

• true
• false