Bad Debts Account: An account in the nominal ledger to record the value of un-recoverable debts from customers. Real bad debts or those that are likely to happen can be deducted as expenses against tax liability (provided they refer specifically to a customer).

 

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Bad Debts Account: An account in the nominal ledger to record the value of un-recoverable debts from customers. Real bad debts or those that are likely to happen can be deducted as expenses against tax liabili . . . View Full Definition

Medical Savings Account (MSA): A trust that employees of small businesses may establish to pay for out-of-pocket medical expenses.

Medical Savings Accounts (MSA): Savings accounts designated for out-of-pocket medical expenses. In an MSA, employers and individuals are allowed to contribute to a savings account on a pre-tax basis and carry over the unus . . . View Full Definition

Memorandum Accounts: A name for the accounts held in a subsidiary ledger. Eg. the accounts in a sales ledger .

Mixed Account: A brokerage account holding both long and short positioned securities.

Market Adjustment-Trading Securities Account: An account used to track the difference between the historical cost and the market value of a company's portfolio of trading securities.

Margin Account (Stocks): A leverageable account in which stocks can be purchased for a combination of cash and a loan. The loan in the margin account is collateralized by the stock; if the value of the stock drops s . . . View Full Definition

Management Accounting: The area of accounting concerned with providing internal financial reports to assist management in making decisions.

Manufacturing Account: An account used to show what it cost to produce the finished goods made by a manufacturing business.

Margin Account: Margin accounts are brokerage accounts that allow you a much wider range of transactions than cash accounts. In a cash account you must pay for every purchase in full at the time of the tran . . . View Full Definition