DPA20303 TOPIC 3 (I)

The primary objective of Islamic accounting is to:

• Maximize shareholder wealth

• Ensure Shariah compliance and socio-economic justice

• Efficient allocation of resource

• Enhance investor decision-making

Which body issues Shariah-compliant accounting and auditing standards?

• FASB

• MASB

• IASB

• AAOIFI

In Islamic accounting, who is considered the ultimate stakeholder

• ALLAH

• Creditors

• Customes

• Regulators

Which qualitative characteristic ensures financial information is free from bias

• Relevance

• Comparability

• Reliability

• Timeliness

Under the profit distribution method in Mudarabah, losses are borne by

• Depositors only

• Bank only

• Both parties according to capital contribution

• Government

Which measurement basis records assets at acquisition cost?

• Current cost

• Realizable value

• Present value

• History value

The concept that assumes business activities continue unless terminated is

• Accounting unit

• Periodicity

• Going Concern

• Probability