Terms starting with
Merger Accounting
Merger accounting refers to how the books are consolidated when two companies combine. Depending on the type of merger, acquisition, or consolidation accountants follow specific…
READ MOREMoney Measurement Concept
This accounting concept states that only transactions measurable in monetary terms are recorded in the books. Non-quantifiable events like employee morale or brand reputation are…
READ MOREModified Accrual Accounting
Modified accrual accounting blends elements of cash and accrual methods. Commonly used in government and nonprofit entities, it recognizes revenues when they’re measurable and available,…
READ MOREManagerial Accounting
Managerial accounting involves preparing internal financial reports to support decision-making by managers. Unlike financial accounting, which targets external stakeholders, managerial reports focus on budgeting, forecasting,…
READ MOREMonetary Unit Assumption
This principle assumes that financial transactions are recorded in a stable, recognized currency (like USD, GBP, etc.) without adjusting for inflation. It provides consistency in…
READ MOREMaturity Date
The maturity date is the specific day when a debt obligation, such as a loan or bond, becomes due for repayment. On this date, the…
READ MOREMatching Principle
The matching principle requires that expenses be recorded in the same period as the revenues they help generate. This ensures accurate financial reporting by aligning…
READ MOREMateriality
Materiality is an accounting principle that determines whether an amount is significant enough to influence decision-making. If information could affect the judgment of a reasonable…
READ MOREMarkup
Markup is the amount added to the cost of a product or service to determine its selling price. It's expressed as a percentage of the…
READ MOREMargin
Margin refers to the difference between sales revenue and the cost of goods sold. It represents how much a company earns after covering production costs.…
READ MORE
This website uses cookies to improve your experience. You can accept all or reject non-essential cookies.