Comparative Balance Sheet Example

Modifications of Assets and Liabilities that increase Stockholders' Equity. Stockholders' equity increases in the following cases:
a) When Assets increase.
b) When the Liability decreases.
Modifications of Assets and Liabilities that decrease Stockholders' Equity. Stockholders' equity decreases in the following cases:
a) When Assets decrease.
b) When the Liability increases.
From the previous modifications, the following cases arose in which Stockholders' Equity increases or decreases:
CASES IN WHICH STOCKHOLDERS 'EQUITY INCREASES
1. When Assets only increase.
2. When the Liability only decreases.
3. When Assets increase and Liabilities decrease.
4. When Assets increase in a greater proportion than Liabilities.
5. When the Liabilities decrease in a greater proportion than the Assets.
CASES IN WHICH STOCKHOLDERS 'EQUITY DECREASES
1. When Asset only decreases.
2. When the Liability only increases.
3. When Assets decrease and Liabilities increase.
4. When Assets decrease in greater proportion than Liabilities.

5. When the Liabilities increase in a greater proportion than the Assets.
In order to better explain capital increases, an example of each of the above cases is presented.