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Accounting Estimates: Recognizing Expenses

In the last article, we discussed revenue recognition, and its implication on financial statement analysis. We will follow up that discussion by going over the other half of the income statement: expenses. We will go over what the accounting standards are and what discretion management has, and how they could

Accounting Estimates: Recognizing Revenue

We discussed financial statements and the importance of financial statement analysis in our previous articles.  We will follow those discussions with a more detailed look at each statement. Public financial statements are governed by accounting standards, usually under IFRS or US GAAP, and audited by an external firm for fairness.

Marginal Costs and Marginal Revenue

In the last article, we talked extensively about supply and demand. We will now focus in on how supply and demand is related to costs and revenue, specifically marginal costs and marginal revenue. By understanding these important concepts, we can gain a better insight on how profit maximizing firms  behave

Analyzing Financial Statements and Ratios

In the last article, we discussed the importance of understanding the three financial statements. In this article, we will make use of the numbers from the financial statements to analyze the underlying company. Vertical and Horizontal Analysis One important aspect of financial statements is that it allows analysts and management to compare

Understanding the Three Financial Statements

A robust understanding the three financial statements is important for banking and asset management interviews. This post is meant to be a quick review for an interview, or a complement to your introduction to financial accounting course, which covers this material in much greater detail. The three financial statements that all

Best Laptop for MBA and Business School

Full Transparency: This is not an advertisement, we are not affiliated in any way with any of the brands mentioned in the article. Business school is starting soon, and some of you may be looking for a new laptop computer for the new semester. There are a ton of choices out

Understanding the Yield Curve

What is Yield? Yield (also called Yield To Maturity, or YTM) is the return investors receive for holding a bond. Yield takes account of both the interest/coupons investors get and the bond price relative to its par value. What are Treasuries? US Treasuries are debt instruments the US Department of the Treasury issues

Central Banks and Monetary Policy: The Federal Reserve

In our previous post, we discussed the importance of interest rates in finance. We also introduced central banks by discussing the role it plays in influencing interest rates. We will go deeper into the function of central banks in this article, discussing their mandates and how they carry out their

Do You Have To Be Good At Math for Investment Banking?

Failing Calculus at UBC Setting: Two guys riled up from Frosh Week and having been introduced to the glitz and glamor of an investment banking job. $150,000 for a starving student that grabs free Campbell Chunky soup samples from the promotional guys walking around the Student Union Building and a bank balance