Megabyte (MB)
A megabyte (MB) is a unit of digital information storage equal to 2^20^ bytes or approximately one million bytes. It is commonly used to quantify the capacity of microcomputer hard disks and high-density floppy disks.
Member Bank
A Member Bank is a financial institution that is part of the Federal Reserve System, including all nationally chartered banks and state-chartered banks that meet certain standards and are accepted for membership.
Member Firm
A member firm, also known as a member corporation, is a brokerage firm that holds at least one membership on a major stock exchange. While exchange rules stipulate that the membership is officially in the name of an employee, it is the firm that utilizes the membership.
Member of a Company
A shareholder of a company whose name is entered in the register of members. Founder members are those who sign the memorandum of association; anyone subsequently coming into possession of the company's shares becomes a member.
Members' Voluntary Liquidation (Members' Voluntary Winding-Up)
Members' Voluntary Liquidation (MVL) is the process of winding up a solvent company by the members' resolution, followed by the appointment of a liquidator and declaration of solvency by directors.
Memorandum
A memorandum is a written document commonly used in business and legal contexts to record information, transactions, intentions, or summarise instrument details in a concise format.
Memorandum Entry
A memorandum entry in accounting is a record in the ledger that does not form part of the double-entry bookkeeping system. These entries are used to provide additional details or supporting information without affecting the financial statements.
Memorandum of Association
An essential official document required to submit to the Registrar of Companies for the formation of a new company, highlighting initial details like company type and authorized share capital.
Memorandum of Understanding (MOU)
A Memorandum of Understanding (MOU) is a formal, non-binding agreement between two or more parties outlining the terms and details of an understanding, including each party's requirements and responsibilities.
Memory (Computing)
Memory in computing refers to the electronic device within a computer, where information is stored while being actively worked on. Memory capacity and type play a crucial role in determining the efficiency and performance of computer applications and software.
Menial Work
Menial work refers to tasks that are typically associated with low skill requirements and often pertain to servant duties or responsibilities. This type of work is often viewed as demeaning or insulting to the person performing it.
Mental Health Insurance
Mental Health Insurance policies provide coverage for psychiatric and psychological care, counseling, and often substance abuse treatment, helping individuals manage and afford necessary mental health services.
Mentor
An experienced manager or employee who guides and advises new employees and managers about the dynamics of an organization and its procedures.
Menu (Computer Application)
A menu is a user interface element within a computer application that displays a list of available commands or choices for a user to select.
Menu Costs
Menu costs refer to the costs associated with changing prices, named after the expense that restaurants incur when they reprint menus following a price change. This concept is key to understanding price stickiness in economics.
Mercantile Agency
Mercantile agencies are organizations that provide businesses with credit ratings and reports on other firms that are or might become customers. Notable examples include Dun & Bradstreet, which offers extensive credit and financial information services.
Mercantile Law
Mercantile law, often referred to as commercial law, governs the rules and institutions pertaining to commercial transactions derived from the law merchant.
Mercantile System
The mercantile system, also known as Mercantilism, is an economic policy that is designed to maximize the exports and minimize the imports for an economy. It promotes governmental regulation of a nation's economy to augment state power at the expense of rival national powers.
Mercantilism
Mercantilism is an economic theory and practice dominant in Europe during the 17th and 18th centuries that promoted governmental regulation of a nation's economy for the purpose of augmenting state power at the expense of rival national powers. It advocates that a nation should export more than it imports to accumulate wealth, primarily in the form of precious metals like gold and silver. Under mercantilism, trade surpluses were viewed as critical for increasing the nation's reserves.
Merchandise
Goods and commodities sold at the retail level. Merchandising is the buying, presenting, and selling of merchandise, including related activities like advertising, displaying, and promoting them to retail customers.
Merchandise Allowance
A merchandise allowance is a sum of money provided or allowed for merchandise returned due to poor quality or overstocking.
Merchandise Broker
A merchandise broker is an intermediary agent acting on behalf of merchandise buyers and sellers, earning commissions or fees for negotiating sales without taking possession of the goods.
Merchandise Control
Merchandise Control involves the systematic process of collecting and evaluating data on all aspects of each retail merchandise category, including sales, costs, shrinkage, profits, and turnover. This process helps retailers maintain accurate inventory and optimize their merchandising strategies.
Merchandising
The planning and activities involved in marketing the right merchandise or service at the right place, time, quantities, and price to stimulate sales through effective promotional strategies.
Merchandising Director
An individual responsible for directing the merchandise sales effort for a manufacturer, retailer, wholesaler, distributor, dealer, or advertising agency.
Merchant
A merchant is an individual or business engaged in the purchase and sale of goods for the purpose of earning a profit. Under the Uniform Commercial Code (UCC), the term can also apply to various parties beyond traditional retail.
Merchant Bank
A comprehensive overview of merchant banks, evolving from financing foreign trade to multifaceted financial institutions providing venture capital, advising on takeovers, and managing investment portfolios.
Merchantable
Merchantable goods are products that are suitable for sale and meet reasonable standards for quality and usability.
MERCOSUR / MERCOSUL (Southern Common Market)
MERCOSUR, also known as MERCOSUL, is a regional trade bloc established by a free trade agreement among Argentina, Brazil, Paraguay, and Uruguay, aimed at promoting free trade and fluid movement of goods, people, and currency.
MERGE
The term 'merge' has dual meanings in both data management and corporate finance. In the context of data management, merging refers to combining multiple lists or files by consolidating duplicate records into single records. In corporate finance, merging refers to the financial consolidation of two companies where only one company survives as a legal entity.
Mergent, Inc.
Mergent, Inc., an integral part of Xinhua Finance, is a renowned provider of global business and financial information, particularly focusing on publicly traded companies and fixed-income securities. Its various products and methodologies have proven invaluable to investors and analysts alike.
Merger
A merger involves the combination of two or more businesses on an equal footing to create a new entity where shareholders mutually share risks and rewards without any party obtaining control over another.
Merger Accounting
Merger accounting is a method that treats two or more businesses as combining on an equal footing. It's favored in scenarios of group reconstruction where it's applied without restating net assets to fair value.
Merger Relief
Relief from adding to, or setting up, a share premium account when issuing shares at a premium if an issuing company has secured at least a 90% equity holding in another company.
Merger Reserve
A merger reserve, also known as merger capital reserve, is credited in place of a share premium account when merger relief is applied. Goodwill on consolidation may be written off against a merger reserve, unlike the share premium account.
Merit Increase
A merit increase is an increase in wages achieved through superior performance on the job. It is also known as merit pay or a merit raise, and is commonly specified as negotiable in contracts between unions and management.
Merit Rating
A systematic evaluation method used to assess employee performance or achievement, often influencing pay increments, promotions, or civil-service ratings.
Message Board
Message boards are online platforms where users can post messages and reply to messages posted by others. These messages are typically public and visible to all users. Such systems foster community discussions and information exchange.
Metadata
Metadata, commonly referred to as 'data about data,' includes vital information pertaining to electronic files, such as creation dates, modification history, authorship, and other properties.
Meter Rate, Meterage
A charge assessed according to the amount shown on a meter, distinguishing it from a specified price. It most commonly applies to utilities, where users are billed based on their consumption.
Metered Mail
Metered Mail refers to letters and packages that are stamped by a postage meter rather than using traditional postage stamps. This method is often implemented by businesses for convenience, accuracy, and cost-effectiveness in handling bulk mailing.
Metes and Bounds
Metes and bounds is a system used for describing the territorial limits of property based on measurements of distance, angles, and landmarks.
Methods-Time Measurement (MTM)
Methods-Time Measurement (MTM) is a predetermined motion time system used for the analysis of work tasks to standardize the time needed to complete a task by determining the average production time interval.
Metric System
The metric system is a decimal-based system of weights and measures in which the gram, meter, and liter are the basic units of weight, length, and capacity, respectively. It is widely used across the world for scientific, industrial, and everyday measurements.
Metrication
The process of converting an existing system of weights and measures to the metric system of weights and measures.
Metropolitan Area
A metropolitan area is generally a developed region that is economically attached to a large central city, encompassing towns, suburbs, and other peripheral areas.
Metropolitan Division
A Metropolitan Division is a county or group of counties within a large Metropolitan Statistical Area (MSA) that functions as a distinct economic area.
Metropolitan Statistical Area (MSA)
A Metropolitan Statistical Area (MSA) is a Core-Based Statistical Area associated with at least one urbanized area with a population of at least 50,000. An MSA comprises the central county or counties containing the core, plus adjacent outlying counties with a high degree of social and economic integration with the central county as measured through commuting.
Mezzanine Finance
Finance that lies between pure equity and pure debt, often used in management buy-outs. It can take various forms, is usually provided by specialist financial institutions, and offers higher returns than pure debt but lower returns than equity.
Mezzanine Financing
Mezzanine financing is a hybrid form of financing that includes both debt and equity components. It is typically used by companies to fund growth and expansion projects, and it is structured as subordinated debt but often comes with attached equity instruments like warrants or convertible shares.
Micro-Entity
A micro-entity is a very small company that meets specific criteria for turnover, net worth, and number of employees, allowing it to present simplified annual accounts under certain regulatory frameworks.
Microcap Stocks
Microcap stocks refer to the shares of publicly traded companies with a market capitalization typically between $50 million and $300 million. These stocks are usually associated with smaller, lesser-known companies and are considered high-risk, high-reward investments.
Microcomputer
A microcomputer is a compact computing device whose central processing unit (CPU) consists of a single integrated circuit known as a microprocessor. It is typically designed for use by one person at a time, making it synonymous with home or personal computers (PCs).
Microcredit
Microcredit is the lending of small sums of money on very low security, especially to small businesses or small producers in the developing world. It aims to support entrepreneurship and alleviate poverty by providing accessible financial services to individuals who are typically underserved by traditional financial institutions.
Micromotion Study
Micromotion study refers to the analysis of a series of very short motions succeeding each other so rapidly that the eye confuses them, often used for the reconstruction of an action through an analysis of its micromotions.
Micropolitan Statistical Area
A Core-Based Statistical Area associated with at least one urban cluster having a population of at least 10,000 but less than 50,000 inhabitants. It includes the central county or counties containing the core, plus adjacent outlying counties highly integrated economically and socially.
Microprocessor
A microprocessor is an integrated circuit that houses the entire central processing unit (CPU) of a computer on a single chip, requiring only memory and input-output devices to complete the system.
Microsoft
Microsoft Corporation is a global leader in software, services, devices, and solutions, renowned for its contributions to the personal computing, productivity, and gaming industries.
Microsoft Office
Microsoft Office is a suite of application software designed for various office and business tasks. It typically includes Word, Excel, PowerPoint, Outlook, OneNote, and Access in its Professional Edition.
Microsoft PowerPoint
Microsoft PowerPoint is a presentation software that is part of the Microsoft Office suite, enabling users to create slides for various purposes, such as printed overhead projector transparencies or digital projections directly from a computer screen. It also supports the creation of coordinated speaker notes and handouts.
Microsoft Word
Microsoft Word is a comprehensive word processing software developed by Microsoft. It is widely used for creating, editing, formatting, and sharing documents. It is part of the Microsoft Office suite and offers a range of features that make it an essential tool for writing and document management.
Microsoft Word
Microsoft Word, commonly referred to as Word, is a popular word processing application sold separately or as part of Microsoft's widely-used Office suite. It offers robust features for document creation, formatting, and editing.
Mid-Cap
Mid-Cap stocks typically have a market capitalization between $1 billion and $5 billion, positioned between small-cap and large-cap stocks. These stocks often offer a blend of stability and growth potential.
Mid-Month Convention in Taxation
The mid-month convention in taxation concerns the depreciation of residential and nonresidential real property, attributing service or disposal to the midpoint of the month in which these events occur.
Midcareer Plateau
A midcareer plateau is a stage in a middle manager's career where advancement opportunities seem obstructed, and the current position no longer offers significant challenges. This situation can be effectively managed through midcareer advancement programs encompassing education and training.
Middle Management
Middle management refers to managers with full management responsibilities who report to higher-level managers. They serve as a bridge between the upper management and operational staff within an organization.
Midnight Deadline
A midnight deadline is a completion requirement that marks the end of a calendar day, often used in contexts such as personal tax return filings.
MiFID - Markets in Financial Instruments Directive
MiFID (Markets in Financial Instruments Directive) is a regulatory framework that standardizes the financial markets across the European Union, enhancing transparency and protecting investors.
Migrant Worker
Migrant workers move from one region of a country to another to find employment, often seeking seasonal work in agriculture.
MIL (or MILL)
MIL, often expressed as MILL, represents one-tenth of a cent. The term is primarily used in expressing tax rates on a per-dollar basis. For example, a tax rate of 60 mills implies that taxes are 6 cents per dollar of assessed valuation.
Mileage (Tax)
Mileage (Tax) refers to the deduction that taxpayers can claim for the business use of their vehicle, either by using the actual expenses method or the standard mileage rate method.
Military-Industrial Complex
The Military-Industrial Complex (MIC) represents the relationship between a country's military and the defense industry that supplies it, advocating for both economic and strategic influence.
Milking
Milking refers to the act of taking full advantage of a situation for personal or corporate gain, often to the detriment of another party.
Milking Strategy
A short-range marketing strategy aimed at extracting the largest possible profit from an item in the shortest possible time, typically without considering the item’s long-range sales potential.
Millage Rate
The millage rate is the tax rate applied to property, where each mill represents $1 of tax assessment per $1,000 of assessed property value.
Millionaire
A millionaire is an individual whose net worth exceeds $1 million, typically calculated by totaling their assets and subtracting liabilities. This status often signifies significant financial achievement and can be attained through various means such as inheritance, business success, investments, or a combination of these.
Millionaire on Paper
An individual whose overall assets exceed $1 million but are not liquid cash. These assets could be in the form of securities, real estate, or other investments.
Mineral Lease
An agreement granting the lessee the right to extract and sell minerals from the lessor's property in exchange for royalty payments based on the value of the extracted materials.
Mineral Rights
Mineral rights are the privileges granted to an individual or entity to extract and profit from the sale of natural resources such as oil, gas, and other minerals located on or beneath the surface of a piece of land. These rights can be sold or leased separately from the ownership of the land itself.
Mini-Warehouse
A mini-warehouse, also known as a self-storage facility, comprises numerous small, lockable units designed for the storage of personal and business items. These units are typically rented on a month-to-month basis and vary in size from 5′ × 5′ to 25′ × 25′. A standard 10′ × 20′ unit often rents for $150 per month.
Minimax Principle
The Minimax Principle is a decision criterion aimed at minimizing the maximum possible loss or regret. It involves selecting the outcome with the smallest potential loss, thereby aiming to achieve the least amount of regret in case of failure.
Minimum Cost
In economics, the term minimum cost refers to the cost objective of a firm at varying levels of output, expressed by the firm's cost function. It represents the lowest possible amount spent to produce a certain level of output while maintaining optimal efficiency.
Minimum Lease Payments
Minimum lease payments refer to the regular rental payments excluding executory costs, which are made by the lessee to the lessor in a capital lease. These payments are reported as an asset and a liability at the discounted value of future minimum lease payments by the lessee.
Minimum Lot Area
Minimum lot area refers to the smallest building lot area allowed in a subdivision, generally specified by a zoning ordinance.
Minimum Payment
The minimum payment is the smallest amount that a consumer must pay on a revolving charge account to keep the account in good standing. Failure to make this payment can lead to late fees and eventual loss of credit privileges.
Minimum Pension Liability
A condition that is recognized when the accumulated benefit obligation (ABO) is greater than the fair value of plan assets. When this occurs, an additional liability must be recorded if an accrued pension liability is already present.
Minimum Premium Value
The minimum premium value refers to the lowest permissible amount by which the book value or issuance cost of shares exceeds their par value, commonly recorded in a share premium account.
Minimum Subscription
The minimum sum of money, stated in the prospectus of a new company, that the directors consider must be raised if the company is to be viable.
Minimum Wage
The minimum wage is the lowest legal rate of remuneration that employers must pay workers. It varies by region, age, and employment type, aiming to ensure a basic standard of living for workers.
Minor
A 'minor' refers to an individual who is under the age of majority, which is specified by law. This age can range between 18 to 21 years, depending on the jurisdiction. Certain contracts entered into by minors are voidable at the discretion of the minor.
Minority Business
Minority Business refers to enterprises owned and operated by underrepresented groups, often experiencing unique challenges such as lack of financing and management experience. Government initiatives, including earmarking a percentage of government contracts, aim to support their growth and success.
Minority Discount
A minority discount is a reduction from the market value of an asset due to the lack of control associated with a minority interest in a business. It reflects the diminished ability of minority interest owners to influence or direct business operations.
Minority Interest (Non-Controlling Interest)
Minority interest, also known as non-controlling interest, represents the shareholding of individual shareholders in a company where more than 50% is owned by a holding company. These shareholders are entitled to profits in the form of dividends but do not have significant influence over company policies.
Minting of Money
Minting of money refers to the production, usually by the government, of currency, particularly coins.
Minus Tick
A Minus Tick, also known as a downtick, is a term used in trading and investing to describe a trade of a security that occurs at a price lower than the previous trade.
Minutes
Minutes are the transcription or other written records of a meeting, detailing key discussions, decisions, and actions taken. Corporations keep minutes of important meetings in their permanent records.
Miscellaneous Income
Miscellaneous Income refers to revenue that is unrelated to and much smaller than that from the main business operation. It usually originates from incidental or auxiliary activities.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.