Management Accounting - Reporting designed to assist
management in decision-making, planning, and control.
Also known as Managerial Accounting.
Management Discussion and Analysis (MD&A) - SEC
requirement in financial reporting for an explanation by
management of significant changes in operations, ASSETS,
and LIQUIDITY.
Managerial Accounting - See MANAGEMENT
ACCOUNTING.
Margin - Excess of selling price over the unit
cost.
Mark-to-Market - Method of valuing ASSETS that
results in adjustment of an asset's carrying amount to
its market value.
Marketable Securities - Stocks and other
negotiable instruments which can be easily bought and
sold on either listed exchanges or over-the-counter
markets.
Matching Principle - A fundamental concept of
basic accounting. In any one given accounting period,
you should try to match the revenue you are reporting
with the expenses it took to generate that revenue in
the same time period, or over the periods in which you
will be receiving benefits from that expenditure. A
simple example is depreciation expense. If you buy a
building that will last for many years, you don't write
off the cost of that building all at once. Instead, you
take depreciation deductions over the building's
estimated useful life. Thus, you've "matched" the
expense, or cost, of the building with the benefits it
produces, over the course of the years it will be in
service.
Materiality - Magnitude of an omission or
misstatements of ACCOUNTING information that, in the
light of surrounding circumstances, makes it probable
that the judgment of a reasonable person relying on the
information would change or be influenced.
MD&A - See MANAGEMENT DISCUSSION AND ANALYSIS.
Merger - BUSINESS COMBINATION that occurs when
one entity directly acquires the ASSETS and LIABILITIES
of one or more entities and no new corporation or entity
is created. (See CONSOLIDATION.)
Monetary Items - Definite fixed amounts stated in
terms of dollars, either by law or by contract
agreement.
Mortgage - Legal instrument evidencing a security
interest in ASSETS, usually real estate.Mortgages serve
as COLLATERAL for PROMISSORY NOTES.
Municipal Bond - BOND issued by a government or
public body, the INTEREST on which is typically exempt
from federal taxation.
Matching Principle - A fundamental rule f baxic
accounting. In any one given accounting period, you
should try to match the revenue you are reporting with
the expenses it took.
Mutual Fund - Investment company which generally
offers its shares to the general public and invests the
proceeds in a diversified portfolio of SECURITIES. (See
CLOSED-END MUTUAL FUND and OPEN-END MUTUAL FUND.)
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