Terms starting with
Monetary Working Capital
Monetary working capital refers to the net balance of current monetary assets and current monetary liabilities. It reflects liquidity position excluding non-monetary items like inventory.…
READ MOREManagement Accounting System
A management accounting system collects, processes, and reports financial data to support internal decision-making. It focuses on budgeting, forecasting, variance analysis, and performance measurement rather…
READ MOREMoving Average Method
Moving average method is an inventory valuation technique where the average cost of goods available for sale is recalculated after each purchase. It smooths price…
READ MOREMulti-Step Income Statement
A multi-step income statement separates operating and non-operating activities to provide a clearer view of profitability. It calculates gross profit, operating income, and net income…
READ MOREMarketable Securities
Marketable securities are short-term, highly liquid financial instruments that can be quickly converted into cash. Examples include treasury bills and publicly traded shares. They areHar…
READ MOREManagement Buyout
A management buyout occurs when a company’s existing management team acquires ownership, often using external financing. The transaction restructures capital and may increase leverage. Accounting…
READ MOREManufacturing Overhead
Manufacturing overhead includes indirect production costs that cannot be directly traced to specific units, such as factory rent, utilities, and maintenance. These costs are allocated…
READ MOREMemorandum Entry
A memorandum entry records non-financial or supplementary information in accounting records without affecting debit or credit balances. It is used for tracking contingencies, guarantees, or…
READ MOREMarket Value
Market value is the price an asset would fetch in an open and competitive market between willing buyers and sellers. It may differ from book…
READ MOREManagement Representation Letter
A management representation letter is a written statement provided by company management to external auditors, confirming the accuracy and completeness of financial information. It acknowledges…
READ MOREMutual Fund Accounting
Mutual fund accounting involves tracking the daily net asset value (NAV), income, expenses, and shareholder activity of a fund. It ensures transparency, compliance, and accurate…
READ MOREMinimum Lease Payments
Minimum lease payments are the fixed payments a lessee is obligated to make under a lease agreement. These include base rent and certain fixed charges,…
READ MOREMarginal Cost
Marginal cost is the additional cost of producing one more unit of output. It includes variable costs like materials and labour but excludes fixed costs.…
READ MOREMisstatement
A misstatement is an error, omission, or fraudulent entry in financial statements that misrepresents a company’s actual financial position. It can be material or immaterial.…
READ MOREMortgage Payable
Mortgage payable is a long-term liability on the balance sheet, representing money borrowed for property or real estate. It includes both principal and interest obligations.…
READ MOREMerger 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.…
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