Data & Finance for Work & Life
Finance content for professional development.
Underwriters and auditors are separate and distinct jobs. While in some cases they may work on the same projects, they work under different scopes. Underwriters deal with risk and uncertainty, while auditors work with financial standards. An underwriter determines the value of risk involved in loans or insurance coverage, whereas an auditor ensures that a […]
Underwriter vs Auditor: What’s the difference? Read More »
Accountants can optionally reverse adjustments at the beginning of an accounting period if a portion of the service, or the receipt of the bill for a service, occurs in the period immediately before. This process is similar to the adjustment of asset value using current depreciation. However, unlike operational adjustments, depreciation adjustments are never reversed
Reversing Entry for Depreciation Expense: Does it Exist? Read More »
In a capitalist world based on debt, the roles of the lender and underwriter are crucial. Most people first hear of lenders and underwriters when they go to take out a loan for a house, but this is only a small fraction of their activity. Anywhere there is debt or marketable securities, as well as
Underwriter vs Lender: What’s the difference? Read More »
If you’ve spent time matching accounts across financial statements, then you know the importance of retained earnings. Without them, your balance sheet would fall out of equilibrium with every sale you make, and expense you incur. In fact, they are so critical to accounting entries that we could say retained earnings are to liabilities &
Retained Earnings: Corresponding Journal Entries Read More »
I recently sat in on a board meeting where the leaders of a $800M revenue company discussed how they could “go public,” and do it in less than 2 years. After some chat, the terms “Private Placement” (PP) and “Direct Public Offering” (DPO) came up. The consensus was that both are cheaper and quicker than
Private Placement vs. Direct Public Offering: Complete Comparative Tables Read More »
There are 6 cost categories associated with an initial public offering — accounting, legal, registration, miscellaneous bills, underwriting, and printing. Most of these are self-explanatory, but the old term “printing” is misleading. Before the 2000s, IPO “printing” costs referred to the cost of actual printed paperwork, such as registration filings, needed for an IPO. Now,
IPO Printing Expenses: Detailed Breakdown With Examples Read More »
Companies “going public” have to make two big decisions: 1. how to price their stock for the public markets, and 2. how to list their stock on the public markets. Traditional paths for pricing involve hiring an investment bank, who discusses with its inner circle of investors about a good offering price. Companies who decide
Book Building IPO: Example Companies & How to Identify Them Read More »
If you’ve spend some time researching types of IPOs, you’ve certainly stumbled upon traditional IPO paths such as the fixed price and book building methods, which involve serious collaboration with underwriters and investment banks to determine the opening stock price. But some companies — notably Google — have started challenging the need for institutional involvement.
Dutch Auction vs Open IPO: Key Differences & Which is Better for Your Company Read More »
Labor can be a tricky topic in accounting journals, especially on the balance sheet. Most students learn that labor and wages are a cost item on the profit and loss statement (P&L). However, labor expenses appear on the balance sheet as well, and in three notable ways: wages payable, works in progress, and capitalized expenses.
Labor on the Balance Sheet: Wages Payable, Works in Progress, & Capitalized Expenses Read More »
In the world of finance, one word can have many meanings. It is easy to get confused, whether you’re a beginner or seasoned professional. For example, the very word “asset” can mean money, a right to money, or simply an object that can be converted into money. Capital is another one of those many-purpose terms,
Is capital stock an asset? No, and Here’s Why It’s Confusing Read More »
