1. Which financial statement reports the status of the business data at a specific date?

1. Balance sheet
2. Value-added statement
3. Income statement
4. Statement of cash flows

2.An oil company wishes to finance an extra drilling well on a site that is already producing oil. It suggests to an Islamic bank that the bank pays the company cash now in return for a specified quantity of oil in one year's time, at which time the well is expected to be up and running. In principle, is this transaction valid under Islamic law?

1. no, there is gharar since oil may not be produced
2. no, since the company is in effect short selling oil
3. no, since oil and money must be exchanged on the spot
4. yes, if a third party guarantees the delivery of oil
5. 100%yes, this is a bay` al-salam contract

3.The following is the current assets and current liabilities of AM Company as of December 31, 2017.

Current assets Current liabilities

Accounts receivable 100,000 Accounts payable 60,000

Inventory 70,000 Overdraft 5,000

Prepayments 10,000 Dividend payable 2,000

Cash & bank 54,000 Tax payable 5,000

Dividends receivable 1,000

If the Inventory includes work in progress $5 and raw materials $10 that have not been adjusted for, What is the appropriate accounting entry for this adjustment?

1. Dr. Raw Material 10, Dr. Work in Process 5 & Cr. Inventory 15
2. Raw Material 5, Dr. Work in Process 10 & Cr. Inventory 15
3. Dr. Raw Material 10 & Cr. Inventory 10
4. Dr. Raw Material 15 & Cr. Inventory 15

4. Bank Muamalat Berhad contributed contributed RM5,000,000 for a four-year Mudharabah contract to Sime Darby Sdn Bhd. The profit sharing ratio (PSR) is 2:1 between the bank and Sime Darby. If the project profit and loss in the 1^st year was RM(180,000), What is the appropriate accounting entry for the bank to record this transaction at the end of Year 1?

1. Dr. Loss on Mudharabah financing RM120,000 & Cr. Mudharabah financing RM120,000
2. Dr. Mudharabah financing RM180,000 & Cr. Loss on Mudharabah financing RM180,000
3. Dr. Mudharabah financing RM180,000 & Cr. Cash RM180,000
4. Dr. Loss on Mudharabah financing RM180,000 & Cr. Mudharabah financing RM180,000

5. Maybank Islamic gave murabaha financing to Ahmad to purchase a house that cost the bank RM 200,000 over a 10-year period. The markup was a constant rate of return of 10% per annum. The instalments are to be paid equally over the 10 years. The bank recognises profit equally over the period. Ahmad paid the instalments regularly for the first 4 years and at the end of the fifth year he redeemed the financing. Maybank Islamic agreed to give Ahmad 80% of the unearned deferred profit at the end of year 5, after taking the full profit for year 5. Which of the following is the correct entry on receipt of instalments of year 1, including recognition of profit?

1. Dr Cash 40,000 Cr Murabaha Financing 40,000 & Dr Unearned Profit 30,000 Cr Profit and Loss 30,000
2. Dr Cash 40,000 Cr Murabaha Financing 40,000 & Dr Unearned Profit 20,000 Cr Profit and Loss 20,000
3. Dr Cash 40,000 Cr Murabaha Financing 40,000 & Dr Profit and Loss 20,000 Cr Unearned Profit 20,000
4. Dr Murabaha Financing 40,000 Cr Cash 40,000 & Dr Profit and Loss 20,000 Cr Unearned Profit 20,000}

6. Maybank Islamic gave murabaha financing to Ahmad to purchase a house that cost the

bank RM 200,000 over a 10-year period. The markup was a constant rate of return of 10% per annum. The instalments are to be paid equally over the 10 years. The bank recognises profit equally over the period. Ahmad paid the instalments regularly for the first 4 years and at the end of the fifth year he redeemed the financing. Maybank Islamic agreed to give Ahmad 80% of the unearned deferred profit at the end of year 5, after taking the full profit for year 5. Which of the following is the correct extract of the balance sheet of Maybank Islamic at the end of the 2nd year after the second instalment is paid?

1. Murabaha Financing 200,000
2. Murabaha Financing 320,000
3. Murabaha Financing 160,000
4. Murabaha Financing 400,000

7. Maybank Islamic gave murabaha financing to Ahmad to purchase a house that cost the bank RM 200,000 over a 10-year period. The markup was a constant rate of return of 10% per annum. The instalments are to be paid equally over the 10 years. The bank recognizes profit equally over the period. Ahmad paid the instalments regularly for the first 4 years and at the end of the fifth year he redeemed the financing. Maybank Islamic agreed to give Ahmad 80% of the unearned deferred profit at the end of year 5, after taking the full profit for year 5. Which of the following is the correct extract of the income statement of Maybank Islamic at the end of the 1st year?

1. Profit/(loss) from Murabaha Financing (20,000)
2. Profit/(loss) from Murabaha Financing 20,000
3. Profit/(loss) from Murabaha Financing 200,000
4. Profit/(loss) from Murabaha Financing 40,000

8. Maybank Islamic gave murabaha financing to Ahmad to purchase a house that cost the

bank RM 200,000 over a 10-year period. The markup was a constant rate of return of 10% per annum. The instalments are to be paid equally over the 10 years. The bank recognises profit equally over the period. Ahmad paid the instalments regularly for the first 4 years and at the end of the fifth year he redeemed the financing. Maybank Islamic agreed to give Ahmad 80% of the unearned deferred profit at the end of year 5, after taking the full profit for year 5. Which of the following shows the correct balance of Unearned Profit account of Maybank Islamic at the end of the 5th year after the payment of the 5th instalment but before redemption?

1. 80,000
2. 120,000
3. 100,000
4. 200,000

9. Maybank Islamic gave murabaha financing to Ahmad to purchase a house that cost the bank RM 200,000 over a 10-year period. The markup was a constant rate of return of 10% per annum. The instalments are to be paid equally over the 10 years. The bank recognises profit equally over the period. Ahmad paid the instalments regularly for the first 4 years and at the end of the fifth year he redeemed the financing. Maybank Islamic agreed to give Ahmad 80% of the unearned profit at the end of year 5, after taking the full profit for year 5. Which pair of the following figures shows the redemption amount (assume the instalments for the 5th year have been paid separately before redemption) and the total profit taken in the 5th year?

1. Redemption amount 120,000, Profit recognised for year 20,000
2. Redemption amount 200,000, Profit recognised for year 40,00
3. Redemption amount 200,000, Profit recognised for year 120,000
4. Redemption amount 120,000, Profit recognised for year 40,000.

10. Which of the following statements is FALSE according to the Islamic

Sharia?

1. Charging or receipt of interest is strictly forbidden under the Islamic Sharia.
2. Under Islam, the rights of private ownership are ultimately subordinated to God.
3. People are not individually accountable for their actions during their lives on the Day of Judgement.
4. The principle of khilafa requires individuals to be personally responsible for what is done with the resources entrusted to them.