Zamala Exam · Topics · Exam guide · Sample questions
Practice questions written by us, with the correct answer and the rule cited. They are not official questions.
1. On 31 December 2026, Najd Logistics Company tested a machine for impairment under IAS 36. Carrying amount: SAR 1,350,000. Fair value: SAR 1,020,000. Costs of disposal: SAR 40,000. Value in use: SAR 1,080,000. The impairment loss to recognise is:
Paragraph 18 of IAS 36 defines the recoverable amount as the higher of fair value less costs of disposal (1,020,000 - 40,000 = 980,000) and value in use (1,080,000), so the loss is 1,350,000 - 1,080,000 = SAR 270,000. SAR 370,000 uses fair value less costs of disposal alone. SAR 330,000 uses gross fair value alone. SAR 230,000 adds the disposal costs to the value in use.
2. In an activity-based costing hierarchy, the cost of setting up machines for each production run is classified as:
Setup cost is incurred each time a batch is run and varies with the number of batches, so it is a batch-level cost. Unit-level costs vary with each unit made, product-sustaining costs support a product line such as design, and facility-sustaining costs support the whole site, such as building rent.
3. Ms Noura, who is NOT the auditor of Najd Logistics Company, is engaged to review the company's annual financial statements. The standard that governs her engagement is:
ISRE 2400 (Revised) deals with a review of historical financial statements performed by a practitioner who is not the entity's auditor. ISRE 2410 is for the review of interim information by the entity's own independent auditor. ISRS 4410 (Revised) covers compilation, which gives no assurance, and ISAE 3402 covers reports on controls at a service organisation.
4. Najd Logistics Company is a zakat payer whose fiscal year coincides with the Hijri year. Its zakat base for the year is SAR 3,200,000. The zakat due for the year is:
Article 15(1) of the Zakat Implementing Regulations (2024 text, in force at 21 March 2027) levies 2.5% of the zakat base for a Hijri year: 3,200,000 x 2.5% = SAR 80,000. SAR 8,000 shifts the decimal point, SAR 77,589 prorates by 354/365 and SAR 82,486 prorates by 365/354, although no proration applies when the fiscal year equals the Hijri year.
5. Which of the following is NOT a form of company under Article 4 of the Companies Law:
Article 4 of the Companies Law lists the forms a company may take: general partnership, limited partnership, joint-stock company, simplified joint-stock company and limited liability company. A sole proprietorship is not one of them; Article 220 of the Companies Law treats the owners of sole proprietorships as persons who may transfer the assets to a company incorporated under the Law. The other three are forms listed in Article 4.
6. Inflation caused by higher wages or raw material costs that shift aggregate supply to the left is called:
Cost-push inflation arises on the supply side when higher input costs reduce aggregate supply and raise the price level. Demand-pull inflation comes from excess aggregate demand, so the aggregate demand curve shifts right instead. Built-in inflation comes from wage and price expectations feeding each other, and a deflationary spiral is a fall in prices, not a rise.
7. Under ISQM 1, the system of quality management comprises several components. Which of the following is NOT one of them?
Paragraph 6 of ISQM 1 lists eight components: the risk assessment process, governance and leadership, relevant ethical requirements, acceptance and continuance, engagement performance, resources, information and communication, and the monitoring and remediation process. An external certification of the firm is not a component, since the firm itself monitors and evaluates its system. The other three options are components named in that paragraph.