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Happy Tuesday, future bankers!

Hope everyone is doing well! Today we’re covering the difference between accounts receivable and deferred revenue, how to talk about past internship experiences, and why Elon is suing OpenAI.

🚀 Let’s get into it.

🔢 Technical Question

What’s the difference between accounts receivable and deferred revenue?

Accounts Receivable and Deferred Revenue are two different types of accounts that reflect a company’s transactions with its customers, but they serve different purposes:

1. Accounts Receivable (AR): This is an asset account on the balance sheet that represents the income from products or services that have been sold and delivered, but for which payment has not yet been received. When a company sells a product or service on credit, it records the amount as Accounts Receivable. As the company receives money from its clients, it decreases (debits) the AR balance and increases (credits) its cash balance.

2. Deferred Revenue: On the other hand, Deferred Revenue is a liability account that reflects cash receipts in connection with goods and services that have not yet been delivered or rendered. This typically happens when a customer pays in advance for a product or service. Each time a company delivers a product or renders a service for which it already received payment, it recognizes the earnings by decreasing (debiting) its deferred revenue balance and increasing (crediting) its revenue.

In summary, the key difference between the two is that Accounts Receivable represents revenue that has been earned but not yet collected, while Deferred Revenue represents revenue that has been collected but not yet earned.

🗣 Behavioral Question

How was your internship experience at [Insert Company]?

Here's a breakdown of best practices:

• Structuring your Response: Consider the following structure to craft a clear and impactful answer:

  • Brief Intro: Acknowledge the internship and express enthusiasm.

  • Key Skills/Experiences: Focus on 2-3 transferable skills and how you developed them. Highlight projects or tasks that align with investment banking duties.

  • Insights Gained: Discuss what you learned about investment banking, the industry, or yourself professionally.

  • Closing: Tie your learning to how it excites you about this new opportunity (e.g. desire to build on these skills, applying insights to this position).

• Show Genuine Enthusiasm: Express how the internship positively influenced your interest in investment banking and this specific role/firm. Never bad mouth or talk negatively about a firm that you previously worked with.

🗞 Industry News

🧑‍⚖️ Elon Sues OpenAI

Elon Musk has filed a lawsuit against OpenAI and CEO Sam Altman, claiming they have abandoned the original mission of developing AI for the good of humanity. Musk alleges that OpenAI, which he co-founded, has become focused on profit, exemplified by its partnership with Microsoft. He criticizes OpenAI for keeping its most powerful AI models secret and claims they are working against the original founding agreement. Musk also alleges that OpenAI's close relationship with Microsoft poses risks similar to those he saw in Google's AI ambitions, risks that spurred the launch of his own rival AI company, xAI.

In the lawsuit, Musk seeks a court order that would force OpenAI to make its technology public and prevent it from using its assets for profit. He is also challenging Microsoft's exclusive license to OpenAI technology. Musk left OpenAI in 2018 amidst a disagreement about the startup's direction and has since become a vocal critic of unregulated AI development. Legal experts suggest that Musk's claims might not hold up in court. Meanwhile, OpenAI's partnership with Microsoft is undergoing antitrust scrutiny, and the company is forming a new board.

Read more about this story below.

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1. Refer Friends: If you manage to get three of your friends to sign up for Finterview, we have a special offer for you. We’ll send you a curated database of links to the career pages of 100+ (and growing) investment banks. This way, you can streamline your search for new internships.

2. How It Works: All you need to do is reply to this email and list the email addresses of the friends you referred. Once we receive your reply and verify the sign-ups, we’ll email you the comprehensive list.

3. Questions or Clarifications: If you have any questions or need further assistance, feel free to reply to this email. We’re here to help! 🌟

Thanks for tuning in today! Best of luck to everyone working through recruiting right now. If you sign an offer, reply to this email and let us know about it! Like seriously, do it—we’d love to hear about it!