Investment Banking 101 Exam Package Deal

What are the three financial statements? - Answer Income statement, cash flow statement, and balance sheet (in this order) Income Statement - Answer Shows the company's revenues and expenses over a period of time. Also known as the P&L statement or the statement of revenue and expenses Cash F...

What are the three main financial statements and what do each consist of? - Answer Income Statement, the Balance Sheet, and the Statement of Cash Flows Income Statement -a company's revenues, costs, and expenses = net income Balance Sheet -a company's assets, liabilities, and equity = a re...

US, UK, and EU Traditions in IB (history) - Answer US - banks offer underwriting services ('investment banks') UK - banks offer equity training services ('merchant banks') EU - banks offer universal services ('banks') Definition of Investment Banks - Answer A system of financial services ...

5 most important accounting concepts you need to know - Answer 1. The 3 financial statements and what each one means 2. How the 3 statements link together and how to walk through questions where one or multiple items change 3. Different methods of accounting - cash-based vs. accrual, and determini...

What is a bank? - Answer Banks serve as a financial intermediaries that receive funds from depositors & loan funds from borrowers Banks help - Answer lubricate the economy Banks provide - Answer security for depositors Banks earn a - Answer return for their stockholders Net interest inc...

functions: acting as an intermediary for capital raising, and as an advisor on M&A transactions and other major corporate actions. As an intermediary, it connects companies that need capital with investors who have capital to spend. It facilitates this through debt and equity offerings. As an adviso...

Investment Banks - Answer Raise debt and equity securities (IPOs, bond issues) Originate, underwrite, and place securities Give advice about M&A or restructuring Primary market Securities Firms - Answer Brokerage services or market making Secondary market What is a key difference between ...

TRUE OR FALSE: A home and land should be recorded on the personal balance sheet at their original cost. - Answer False TRUE OR FALSE: All assets, regardless of category, should be recorded on your balance sheet at their current fair market value. - Answer False TRUE OR FALSE: Money I loaned to...

Functions of a commercial bank - Answer collect deposits Make loans to businesses and individuals Provide accounts and cash management services Functions of an investment bank - Answer Helps companies issue debt and equity provides advice to companies regarding mergers, acquisitions, and sale ...