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20. In the _______ practice of accounting, the accounting concepts
are required to
guide the existing practice of accounting, prescribe future
directions in
accounting, and identify certain fundamental accounting
issues.
a) Islamic
b) conventional
c) contemporary
d) all of the above
21. Which one of the following countries does not require Islamic
financial
institutions in their respective jurisdictions to abide by the
AAOIFI reporting
standards?
a) Bahrain
b) Jordan
c) United Arab Emiratis
d) Sudan
22. The ____________ is based on the occurrence of a transaction
regardless of the
fact whether there is exchange of cash or not.
a) cash flow accounting method
b) accrual accounting method
c) statement of financial position
d) comparative financial statement
23. The concept that indicates that life of the Islamic bank should
be broken into
reporting periods to prepare financial reports that provide
interested parties with
information or directions by which they can evaluate the
performance of the
accounting unit is known as:
a) product life cycle
b) periodicity
c) quarterly reporting
d) first in first out
24. _______ is the formal record of the financial activities
(transactions) of a
business entity.
a) bookkeeping
b) Statement of profit and loss
c) Financial statement d)
comparative Financial statement
25. According to the AAOIFI, FAS 1 paragraph 2, financial
statements of an entity
of Islamic banks consists of:
a) a statement of financial position (balance sheet)
b) an income statement
c) a statement of cash flows
d) all of the above
26. The following statements about comparative financial statements
of Islamic
financial products are true EXCEPT for:
a) comparative financial statements of a corporate entity give the
direction of
change in the business in at least two financial periods
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b) comparative financial statements analysis involves the
comparison of the figures
of the current year with those of the previous year(s) to determine
the performance of
the business
c) comparative financial statements as the tool for analysis
provide necessary
information about the sustained performance or poor performance of
the entity
d) Islamic banks and financial institutions are not required to
publish comparative
financial statements
27. The four basic financial statements are:
a) balance sheets, income statements, cash flow statements, and
adjustment
statements
b) balance sheets, income statements, statement of retained
earnings, and statements
of current assets
c) income statements, cash flow statements, statement of retained
earnings, and
statements of financial position
d) income statements, cash flow statements, statements of current
liabilities and
balance sheet
28. _________ is also known as the Statement of Financial
Position
a) statement of retained earnings
b) balance sheet
c) cash flow statement
d) none of the above
29. Which of the following liabilities must be disclosed according
to FAS 1 para 41?
a) deposits of other banks
b) declared but undisturbed profits
c) zakah, salam payables and taxes payable
d) all of the above
30. According to per para 44, the following items must be disclosed
in the statement
of financial position EXCEPT:
a) authorized, subscribed and paid-in capital
b) other changes in owners’ equity during the period
c) profit and losses from investment
d) any restrictions imposed on the distribution of retained
earnings to owners
31. The Income Statement may also be referred to as:
a) The Profit and Loss Statement
b) Statement of Operations
c) Statement of Income
d) All of the above
32. The following item(s) must be disclosed in the income statement
according to
FAS 1 para 50:
a) current accounts, savings accounts, and other accounts
b) deposits of other banks’ revenues
c) expenses and losses from investments
d) gains from investments
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33. In a single proprietorship, the statement of retained earnings
may also be called:
a) equity statement or statement of owner’s equity
b) statement of partners’ equity
c) statement of retained earnings and stockholders' equity
d) none of the above
34. Which of the following is a specific disclosure required in the
statement of
changes in owners’ equity according to para 58 of FAS 1?
a) net income (loss) for the period
b) transfers to legal and discretionary reserves during the
period
c) capital contribution by owners during the period
d) distribution to owners during the period
35. The Islamic bank’s share in income (loss) from investments must
be disclosed in
the:
a) cash flow statement
b) income statement
c) statement of retained earnings
d) statement of changes in owners’ equity
36. AAOIFI proposed set of financial statements for Islamic banks
include:
a) financial statements that reflect the Islamic bank’s function as
an investor
and its rights and obligations
b) a financial statement reflecting changes in restricted
investments managed
by the Islamic bank for the benefit of others whether based on a
Mudaraba
contract or an agency contract.
c) financial statements reflecting the Islamic bank’s role as a
fiduciary of
funds made available for social services when such services are
provided
through separate funds
d) all of the above
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20 | b) conventional |
21 | c) United Arab Emiratis |
22 | b) accrual accounting method |
23 | b) periodicity |
24 | c) Financial statement |
25 | d) all of the above |
26 | d) Islamic banks and financial institutions are not required to publish comparative financial statements |
27 | c) income statements, cash flow statements, statement of retained earnings, and statements of financial position |
28 | b) balance sheet |
29 | d) all of the above |
30 | c) profit and losses from investment |
31 | d) All of the above |
32 | b) deposits of other banks’ revenues |
33 | a) equity statement or statement of owner’s equity |
34 | a) net income (loss) for the period |
35 | c) statement of retained earnings |
36 | d) all of the above |
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