Which of the following affects both the balance sheet and the income statement?

A. Purchase of Inventory. The purchase of inventory will affect both the income statement and balance sheet.

D. Amortization of Prepaid Insurance

Option D is the correct answer. As prepaid is the balance sheet item and amortization is an expense nature therefore this transaction will impact both balance sheet and income statement at the same time.

Option B could be, if the machine would have been sold in profit. Profit on disposal of asset.

purchase of inventory affect same time on balance sheet and income statement