Brony's Bike module 8,9,10

Question 11

The securities disposed of during 20X9:

a. Generated net losses of $198,000 on disposal

b. Generated net gains of $198,000 on disposal

c. Turned out to be really good investments

d. Were all marketable equity securities

QUESTION 12

Bronys Bikes income from interest and dividends totaled:

$105,000

$292,000

$397,000

($198,000) loss

QUESTION 13

Because WP 2 does not mention any of the securities that are pledged as collateral for Bronys Bikes loans, the auditor can safely assume:

That none of the securities are pledged as collateral

That all of the securities are pledged as collateral

Nothing as to whether the securities are pledged as collateral

That he/she should not be concerned about collateral issues