Accounting - Breaking Into Wall Street Already Passed

Does Common Stock & APIC respond to market value (does it change if share price changes?) {Ans: NO - it only records the market value at the time it was issued by the company}What does a balance sheet show? {Ans: the Company's resources (assets) and how it acquired the resources (liabilities and equity) at a specific point in time}What are some key items in the CF Investing Section? {Ans: - CAPEX (-) - PPE Sale Proceeds (+) - Purchase Short-Term Investments (-) - Purchase Long-Term Investments (-) - Sell Short-Term Investments (+) - Sell Long-Term Investments (+)}Normally Goodwill remains constant on the BS. Why would it be impaired and what does Goodwill Impairment mean? {Ans: - Goodwill: purchase price - subsidiary's SE. The amount in excess of target's SE that a parent company pays in cash. Goodwill helps to balance the BS - Goodwill can be impaired if the company, later on, reassesses what it really got out of the deal, and finds that those "assets" are worth significantly less than they originally thought and realizes that it "overpaid" for the seller -> this can result in extremely negative Net Income on the IS - could