The balance sheet alone is affected by transactions between the company and its stockholders.
The balance sheet is a financial statement which reports the assets, liabilities, shareholder equity of a firm at end of an accounting period.
- The reason the balance sheet is only affected is because its accounts for stockholders transactions alone. Account such as Income statement, Trial balance does not account for this transaction.
Therefore, the Option D is correct because the balance sheet alone is affected by transactions between the company and its stockholders.
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