1.Read the statements below and answer the question - The earnings process should be completed entitling the bank to the right to receive - Obligations arises on the part of the customer to remit fixed or determinable obligations - Amount received is known and if not collected is collectable with reasonable certainty What do the above statement reflect? (A) Revenue recognition principles (B) Expenses recognition principles (C) Provision recognition (D) Debt recognition principles 2.An asset is anything that is capable of generating positive cash flows or other economic benefits in the future either by itself or in combination with other assets which the financial institution has acquired the right to as a result of past transactions or events. Although the capacity of the financial institution to control benefits is usually the result of legal rights, an item may nonetheless satisfy the definition of an asset even there is no legal control. Based on the above statement which of the following is true (A) The above statement reflects the definition of an asset in Islamic accounting (B) The above statement contradicts the definition of an asset in Islamic accounting (C)The above statement reflects the definition of forward sale contracts with an underlying asset in Islamic Accounting (D) The above statement contradicts the definition of forward sale contracts with an underlying asset in Islamic accounting

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1.Read the statements below and answer the question

- The earnings process should be completed entitling the bank to the right to receive

- Obligations arises on the part of the customer to remit fixed or determinable obligations

- Amount received is known and if not collected is collectable with reasonable certainty

What do the above statement reflect?

(A) Revenue recognition principles

(B) Expenses recognition principles

(D) Debt recognition principles

2.An asset is anything that is capable of generating positive cash flows or other economic benefits in the future either by itself or in combination with other assets which the financial institution has acquired the right to as a result of past transactions or events. Although the capacity of the financial institution to control benefits is usually the result of legal rights, an item may nonetheless satisfy the definition of an asset even there is no legal control. Based on the above statement which of the following is true

(A) The above statement reflects the definition of an asset in Islamic accounting

(B) The above statement contradicts the definition of an asset in Islamic accounting

(C)The above statement reflects the definition of forward sale contracts with an underlying asset in Islamic Accounting

(D) The above statement contradicts the definition of forward sale contracts with an underlying asset in Islamic accounting

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