Investment Banking Technicals

Technical Interview Prep

Matching Principle

Matching revenues with associated expenses in the same period

Where is stock-based compensation recorded?

Specific Line Item: It is usually not a separate line item. Instead, it is allocated into SG&A (for executives/sales), R&D (for engineers), or COGS (for support staff), depending on the employee receiving the stock

Additional Paid-In Capital

This records the "excess" amount investors paid above the par value

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