المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية اإللكترونية
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 1 FIN401 (2nd Term 2021-2022)
Deadline: 14/03/2022 @ 23:59
(To be posted/released to students on BB 26/02/2022)
Student’s Name:
Course Name: Bank Management
Course Code: FIN401
Student’s ID Number:
Semester: 2nd
CRN:
Academic Year: 1442/1443 H, 2nd Term
For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /10
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
•
•
This assignment is an individual assignment.
Due date for Assignment 1 is 14/03/2022
•
The Assignment must be submitted only in WORD format via allocated folder.
•
Assignments submitted through email will not be accepted.
•
Students are advised to make their work clear and well presented, marks may be reduced for
poor presentation. This includes filling your information on the cover page.
•
Students must mention question number clearly in their answer.
•
Late submission will NOT be accepted.
•
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
•
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية اإللكترونية
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Questions
1. What is the Glass-Steagall Act, and why was it important in banking history? (2 Marks)
2. Why do Banks and other financial intermediaries exist in modern society, according to the theory
of finance?
(2 Marks)
3. Riyadh Bank are considering filing an application with the state banking commission to charter a
new bank. Due to a lack of current banking facilities within a 10-mile radius of the community,
the organizing group estimates that the initial banking facility would cost about $3.3 million to
build along with another $500,000 in other organizing expenses and would last for about 25
years. Total revenues are projected to be $400,000 the first year, while total operating expenses
are projected to reach $160,000 in year 1. Revenues are expected to increase 4 percent annually
after the first year, while expenses will grow an estimated 2 percent annually after year 1. If the
organizers require a minimum of a 10 percent annual rate of return on their investment of capital
in the proposed new bank, are they likely to proceed with their charter application given the
above estimates?
(3
Marks)
Input Area:
Initial cost of banking facility
Initial other organizing expenses
Year 1 revenue
Year 1 operating
expense
Annual growth rate in revenues
Annual growth rate in expenses
Required annual rate of return
$3,300,000.00
$500,000.00
$400,000.00
$160,000.00
4.00%
2.00%
10.00%
4. National Bank of Saudi Arabia is considering installing two ATMs in its Riyadh branch. The
new machines are expected to cost $37,000 apiece. Installation costs will amount to about
$15,000 per machine. Each machine has a projected useful life of 10 years. Due to rapid growth
in the Riyadh, these two machines are expected to handle 50,000 cash transactions per year. On
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية اإللكترونية
College of Administrative and Financial Sciences
average, each cash transaction is expected to save 30 cents in teller expenses. If First National
has a 10 percent cost of capital, should the bank proceed with this investment project?
(3 Marks)
Answer:
College of Administration and Finance Sciences
Assignment (1)
Deadline: Saturday 05/03/2022 @ 23:59
Course Name: Tax and Zakat Accounting
Student’s Name:
Course Code: ACCT 422
Student’s ID Number:
Semester: 2ND
CRN:
Academic Year: 1443 H
For Instructor’s Use only
Instructor’s Name: Dr. Ashfaque Ahmed
Students’ Grade:
/10
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
• All answers must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism.
• Submissions without this cover page will NOT be accepted.
Assignment 1
College of Administration and Finance Sciences
Question: 1
Explain the followings in your own words: (2 marks)
a. What do you mean by tax system in KSA? Is tax system is good or bad? Support your
answer
b. Under the Tax Law, who are the person or artificial person subject to the tax in Saudi
Arabia?
c. How many types of tax systems are prevailing in the KSA?
d. The Tax Law provides that income from the following specific types of activities/sources
is considered taxable in KSA:
Q-2-What do you mean by Zakat, in your opinion what are the certain updates on the Tax and
Zakat regulations in kingdom of Saudi Arabia? (2 marks)
Question 3
A resident capital company has both Saudi and non-Saudi shareholders and its capital is
divided between them equally. Net income for 2020 was 6,000,000 SR and was adjusted
according to the tax rules applicable in the kingdom is 6,400,000 SR. (2 Marks)
Required:
1. Compute the tax amount to be paid by the company.
2. Compute the tax amount to be paid by non-Saudi shareholders assuming that dividends
paid in cash of 2,000,000 SR and give explanation about dividends
College of Administration and Finance Sciences
Question 4
Now a days Saudi Government is focusing the taxation revenue. “Saudi Arabian government
imposing different types of taxes on commodities, services as well as residency” (2 marks)
Support your answer to the above case study and differentiate between selective commodities
tax and value added tax in your own words. Compare the VAT with past and present
Question 5
A taxpayer incurred expenses of 150,000 SR to improve a depreciable asset at a book value of
950,000 SR. What is the amount of expenses deductible by the tax law? (2 mark)
Purchase answer to see full
attachment
