Tax and Zakat Accounting
ACCT 422
ASSIGNMENT 2
You are required to work in this assignment individually.
Any suspicious activities or cheating will result zero grade in this
assignment.
Q1.
Accounting methods discusses the elementary rules and
guidelines under which businesses keep their financial records and prepare
their financial reports. There are two main accounting methods used for record
keeping: the cash basis and the accrual basis. What important points a Small
business owner must decide which method to use. Is it possible for a taxpayer
to change from one method to another if so enlighten when taxpayers may change
from one method to another.
Q2.
Zakat, the giving of alms to the poor and needy, is one of
the five pillars of Islam (the others are declaration of faith, prayer, fasting
in Ramadan and Hajj). It is obligatory upon every adult Muslim of sound mind
and means.
In the time of leader ‘Umar ibn ‘Abdul ‘Aziz, it is said
that the zakat distributors travelled far and wide, but were unable to find
anybody poor enough in the region to receive the zakat. This shows the true
power of zakat: if everyone paid, and the funds were used wisely to change the
root causes of poverty, global hunger and destitution could be ended. Being a
student you are required to determine the assets on which zakat is calculated
and measures to determine Nisaab with a numerical example of any company or
organization.
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