Maintenance
Expenditures incurred to maintain plant assets in good condition. Since these costs are used in an accounting period they become expired and are expensed. Contrast maintenance costs, which are expensed, with improvement costs which are capitalized.
|
Management accounting
Includes the analysis and manipulation of information summarized in the accounting systems to help plan and make business decisions.
|
Margin
The difference between cost and selling price.
|
Market Value
Often referred to as Fair Market Value (FMV); the amount for which an asset can be sold between a willing seller and a willing buyer.
|
Matching rule
One of the five rules of operation of financial statements. The rule states that revenue that has expenses associated with it in a given accounting period should be reported in the same period. Matching the expense element to the revenue element makes it possible to accurately assess whether a profit or a loss occurred in that period.
|
Materiality
One of the four secondary characteristics of accounting information. Another word for size. Is there any practical value spending hours searching for a one cent error? If an amount listed on a financial statement will make a significant difference to the user it is considered to be "material".
|
Merchandise
Goods that have been purchased for resale. Inventory.
|
Monetary assets
Consists of cash and cash equivalents (marketable securities, etc.), notes receivable and accounts receivable.
|
Monetary liabilities
Liabilities for a specific amount of money, such as notes payable and capital leases.
|
Money person
Refers to a person who understands finance and accounting.
|
Mortgage
A pledge of real estate as collateral for a loan.Net
|