1.The net assets of a corporation are equal to:

Total assets - total liabilities.

Total assets + total liabilities.

Total assets + retained earnings.

Total assets - retained earnings.

2.

Which statement is true about a stock split?

A change in total stockholders' equity depends upon whether it is a 2-for-1 split or a 3-for-1 split.

Total shareholders' equity decreases.

Total shareholders' equity remains the same.

Total shareholders' equity increases.