Islamic Accounting 2

What does the term 'Sole Proprietorship' refer to?

• A business with two or more owners

• A business with a single owner

• A publicly traded corporation

• A partnership of firms

Which of the following best describes a corporation?

• A business owned by one person

• A business organized as a limited liability company

• A business whose ownership is represented by publicly traded stock

• A business structured as a partnership

What does Islamic accounting prioritize in financial reporting?

• Risk-taking

• Transparency and honesty

• Profit maximization

• Speculation and gambling

What is Zakat in Islamic accounting?

• A tax on profits

• Obligatory almsgiving

• A method of profit-sharing

• A type of interest

Who are considered external users of financial information?

• Managers

• Employees

• Creditors

• Production supervisors

Which of the following financial instruments is used in Islamic finance?

• Bonds

• Sukuk

• Shares

• Debentures

Which of the following is NOT a characteristic of a partnership?

• Ownership by two or more individuals

• Partners are liable for obligations

• Limited liability for all partners

• Active management by partners

In accounting, what is the definition of a 'transaction'?

• Any agreement made by a company

• A financial event recorded in accounts

• A legal contract between two firms

• A forecast for future sales

What is a key feature of Islamic financial instruments like Sukuk?

• Interest-based returns

• Asset-backed financing

• Speculative trading

• Guaranteed profit

The primary purpose of bookkeeping is to:

• Interpret financial data

• Record transactions

• Analyze financial trends

• Communicate with stakeholders