Part A - True/False Read each statement carefully and determine whether the statement is true or false. Rubrics: 1 mark each for correct answer, for 10 statements - Total 10 marks) 1. When the cash increases, the cash item will be credited in the journal. 2. When a firm purchases inventories from the supplier for cash, it will debit the inventory account and credit the cash account. 3. Account payable is always on the asset side of the balance-sheet. 4. Unrestricted investment account is based on the principle of mudarabah mutlaqoh. 5. When Islamic banks give financing facilities to their clients, the banks act as the rabbal- mal in the mudarabah contract. 6. When an Islamic bank provides murabahah facility for home furniture with a cost of OMR 3,000 with a constant rate of return of 2% for a period of 2 years, it will record its murabahah financing in the beginning of period as OMR 3120. 7. Continuing from question no.6 above, in the journal entry, the Islamic bank will credit murabahah receivable account OMR 3120 and debit cash account OMR 3000 and debit deferred profit account OMR 120 in the year 0. 8. Murabahah is a cost-plus-markup credit sale. The cost here is the cash that the bank spent to buy the commodity for selling. 9. When the bank receives payment from the client from the murabahah facility, the bank will credit cash and debit account receivable. 10. Murabahah of Islamic bank is the alternative to loan in conventional bank