ACCT 422 Tax and Zakat Accounting
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Assignment-2-ACCT422students.docx
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.
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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