Accounting and Office Management Practice Flashcards

Comprehensive practice flashcards covering office motivation, meetings, salary administration, employee discipline, banking operations, and income tax from the lecture notes.

Meeting (Latin: maeta)

Derived from the Latin word meaning 'face to face,' it is defined as an act of coming together to discuss any particular matter.

Statutory Meeting

The first meeting of shareholders of a public Company, held only once in its lifetime, after $1$ month but within $6$ months from obtaining the certificate of commencement of business.

Notice (General Meeting)

An advance written intimation given at least $21$ clear days before the actual date of the meeting to inform the day, date, time, place, and business to be transacted.

Quorum (Public Company)

The minimum number of members required to be present for a valid meeting; for a public company, this is at least $5$ members unless stated otherwise in the articles of association.

Agenda

A program or list of items to be transacted at a meeting, prepared by the secretary in consultation with the chairman and sent along with the notice.

Minutes

A brief summary of the actual proceedings of a meeting that must be recorded in the minute book within $30$ days and signed by the chairman.

Proxy

A person appointed by a member of the Company to attend and vote on their behalf at a general meeting; the form must be deposited at least $48$ hours before the meeting.

Motion

A proposal or proposition placed before a meeting for discussion; if approved by the required majority of votes, it becomes a resolution.

Ordinary Resolution

A resolution passed by a simple majority, where more than $50\%$ of the votes are in favor of the motion to transact routine business.

Special Resolution

A resolution passed by a substantial majority of $\frac{3}{4}$ or $75\%$; it must be filed with the registrar of companies within $30$ days of passing.

Voting by Poll

A secret method of voting where 'one share one vote' is the principle and proxies are allowed to participate; the result is final and cannot be challenged.

Motivation

The process of inspiring, encouraging, and activating office employees to take required action to achieve desired goals within a specific time limit.

Autocratic Leadership

A leadership style where the leader takes all decisions, has full control, and does not consider subordinates' needs or suggestions.

Democratic Leadership

A style where the leader and subordinates support each other as a team, giving freedom of expression and exchanging creative ideas for effective results.

Laissez Faire Leadership

A liberal attitude where the leader allows highly skilled subordinates to complete work in their own style without interference.

Promotion

The posting of an employee from a lower grade to a higher grade with higher salary, status, authority, and responsibilities.

Demotion

A kind of punishment involving shifting an employee from a higher post or status to a lower one due to misbehavior, inefficiency, or corruption.

Suspension

A disciplinary action where an employee is terminated from service for a certain period due to fraud or negligence, typically receiving half salary during the inquiry.

Absenteeism

The situation where an employee fails to reach the workplace for duty on time or remains absent with or without prior permission.

Pension

A retirement benefit paid regularly by a Company to an ex-employee to maintain their standard of living based on years of service and final salary.

Gratuity

A monetary reward paid in lump-sum by the employer to an ex-employee for past services, payable to those who worked for a minimum of $5$ or more years.

Office Salary Administration

The process of ensuring equitable payment to all employees based on the respective value and worth of their jobs in the Company.

Job Evaluation

A systematic process of determining the relative worth of different jobs in an organization based on skills, training, responsibility, and efforts.

Merit Rating (Performance Appraisal)

A systematic evaluation of the personality and work performance of each employee to differentiate between good and bad workers.

Time Rate System

A wage payment method where remuneration is paid based on the hours or time spent by workers in the factory regardless of output.

Piece Rate System

An incentive wage system where wages are calculated by multiplying the number of units produced by the wage rate per unit.

Halsey Plan

An incentive plan where a minimum wage is guaranteed and a bonus of $33\%$ to $50\%$ of the hourly rate is given for time saved.

Taylor's Differential Piece Rate Plan

A system that rewards efficient workers with a higher rate for exceeding standard output while penalizing slow workers with a lower rate.

Fringe Benefits

Extra benefits provided by an employer in addition to regular salary, such as medical insurance, food coupons, or company cars.

Positive Discipline

Also called 'self-imposed discipline,' it involves creating an atmosphere of self-control through rewards and constructive support.

Service Book

A permanent record of every event occurring in the official life of a government servant, including joining, salary increments, and leaves.

Confidential Report

A performance appraisal method used in government sectors where superiors record observations on a subordinate's behavior and conduct in a sealed cover.

Casual Leave (CL)

A leave granted for unforeseen personal matters, typically limited to a maximum of $3$ days in a month and not encashable.

Earned Leave (Privilege Leave)

Planned long leaves provided for travel or vacation, calculated on a month-on-month basis and eligible for carry-forward or encashment.

Maternity Leave

A paid leave of up to $12$ weeks ($84$ days) provided to female employees under the Maternity Benefits Act, $1961$.

Salary Bill

A consolidated sheet showing gross and net salaries earned by each employee, including allowances and deductions, prepared monthly.

Master Budget

A combination of all types of budgets that presents a complete summary of the financial status and direction of a Company for a year.

Cash Flow Budget

A financial tool that controls and monitors the daily inflow and outflow of cash to predict the Company's ability to pay expenses.

NEFT (National Electronic Fund Transfer)

A nation-wide electronic payment system in India controlled by the R.B.I. for transferring funds from one bank branch to another.

RTGS (Real Time Gross Settlement)

A specialist fund transfer system for continuous real-time settlement of transactions without a waiting period, typically within $2$ to $3$ hours.

Crossing of Cheque

Drawing two parallel transverse lines across the face of a cheque to ensure safety and that payment is credited only to the payee's account.

Bank Draft (Demand Draft)

An order drawn by one branch of a bank upon another branch of the same bank to pay a specified sum to a certain person on demand.

Office Form

A printed sheet of paper with marked headings and blank spaces used to collect, analyze, preserve, and transmit information.

SEBI (Securities and Exchange Board of India)

A statutory body established in $1988$ and empowered by the SEBI Act, $1992$, to regulate stock exchanges and protect investors' interests.

Depository

An institution or computerized system, such as NSDL or CDSL, where shares and securities are held in electronic form on behalf of investors.

Depository Participant (DP)

An agent of the depository that acts as an intermediary between the investor and the depository for trading securities.

Dematerialisation (Demat)

The process of converting physical share certificates into electronic holdings to eliminate risks like theft, loss, or fraud.

ISIN (International Securities Identification Number)

A unique $12$ digit alpha-numeric identification number allotted to each security for identification in the depository system.

Assessee

Any person by whom any tax, interest, or penalty is payable under the Income Tax Act, or against whom proceedings are ongoing.

Assessment Year (A.Y.)

The period of $12$ months starting from $1st$ April following the financial year wherein the income of the previous year is assessed.

Previous Year (P.Y.)

The financial year immediately preceding the assessment year; for A.Y. $2015-2016$, the P.Y. ends on $31st$ March $2015$.

TDS (Tax Deducted at Source)

A system where tax is deducted from income (like professional fees or interest) at the point of origin before payment to the recipient.

Form 16A

A TDS certificate issued for income sources other than salary, such as fixed deposits, rent receipts, or insurance commissions.