Each transaction affects at least two items. The third transaction affects more than two items. After a transaction is recorded, the total of the assets side of the balance sheet always equals (or "balances") the total of the equities side. This is why the statement is called a balance sheet. This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here! How does an increase in the firm's balance sheet debt affect the credit quality/rating and valuation of its bonds?

Initial Public Offerings - How They Affect Companies and Investors Initial Public Offerings ( IPOs ) are the first time a company sells its stock to the public. Sometimes IPOs are associated with huge first-day gains; other times, when the market is cold, they flop.