Accounting Basics - Is this a good book?
In order to start learning finance, understanding accounting and balance sheets is important. Does anyone know if this is a good book?
http://www.amazon.com/Read-Financial-Report-John-…
Also, does anyone know of other books or textbooks (that aren't 50 billion pages long) that I could read? I basically want enough knowledge to understand a model by starting with this and then reading a finance book (probably a basic corporate finance college textbook).
Accounting: http://www.matchettgroup.com/financial_training/publications/workbooks/… Investment Banking: http://www.scoopbooks.com/ourbooks_2.php
Not sure what level your accounting/finance knowledge is at right now, but in terms of understanding how the two subjects tie together in the context of valuation, I recommend:
http://www.amazon.ca/Financial-Statement-Analysis-Security-Valuation/dp…
I have never taken any accounting or finance courses (yet)
So as background to finance/accounting and IB in general, I should take a look at those books? Anything else?
Personally, I believe the best way of understanding accounting for Corporate Finance / Investment Banking purposes is doing those IB Prep courses, such as Wall Street Prep or Wall St. Training. This is because you need the basic knowledge of accounting, not master it because you won't be an accountant.
lui, I am doing WSP right now. I love it, but unfortunately without good understanding of accounting & finance it's useless. The program throws some important accounting terms w/o basic explanation.
Millhouse, you are freshman, if you start reading all those books now, you'll burn out by senior year. Go have fun, get drunk, and have sex with girls. Just make sure you keep your GPA around 4.0 and take Finance & Accounting classes. I mean wtf do your parents pay $20,000 or $40,000 a year for?
And instead of buying Rolex for $5,000, invest those money in Human Capital (GMAT, Wall Street Prep, DealMaven, CFA Level 1) or travel.
I know Wall St. Training has an Accounting module that seems pretty decent to me and is tought in an easy-to-understand way... But I agree, don't waste your time with all that stuff now....
I am in my university's (liberal arts) Financial Accounting course and this simple book covers the bases well:
Accounting Principles I - CLIFFS QUICK REVIEW - by Elizabeth A Minbiole
Just take a course in accounting, it will probably go toward your concentration if it is econ or business, if accounting is not a requirement for it already
To get a basic understanding of how accounting really works I'd advice the following article:
http://www.myhowtoos.com/en/at-work-howtoos/80-understanding-accounting…
Accounting Basics - Junior at top target (Originally Posted: 01/02/2013)
For a Junior at a top target with no banking experience and high GPA, what's the best way to prep for the accounting portion of the interviews? I have a decent understanding of valuation ( read Rosenbaum cover to cover), but know nothing about accounting, how financial statements relate, etc.
Standard accounting books don't look at things from an IBD perspective. Is there a good guide out there to clearly and succinctly teach this?
how do you understand valuation if you don't understand accounting? valuation is based on the financial statements..
Thought so as well. You already should have some basic accounting knowledge if you read Rosenbaum from cover to cover. With this knowledge it should be easy to read the accounting part on macabacus.
Yeah... I can really only answer this by telling you to take introductory accounting courses. What is your major that allowed you to get so far without knowing something this basic? I'm seriously curious, sorry if I sound condescending.
If I had to guess, it would be because OP isn't in an econ(ish) major. Given the fact that he's at a top target (Harvard/Princeton etc), his/her school probably doesn't even offer many accounting courses (if at all). I'm in the same position - I've taken zero accounting/valuation/corp. finance courses. If you're at a top target, BB's don't really care if you've never done accounting/finance as long as you know your basic technicals, demonstrate interest in banking, and have a good GPA.
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