Mini-Case the Bookworm Is a Bookstore and Café Located on a a Busy

question 107

Multiple Choice

Mini-Case
The Bookworm is a bookstore and café located on a busy downtown main street in Denver.The owner,Waata Reader prides himself on the vast selection of books available in the shop.The store has three stories,with both stairs and an elevator to each level.In the back of the first floor is the café,which serves sweets and coffee drinks.Many times customers will linger there over a cup of coffee,deciding which book to purchase.Waata has expanded several times and now he has 22 people on the staff of the current,larger store.
-Waata carries health insurance for his family and his staff and their families.While it is a bit more expensive,the policy allows everyone to choose their own doctor.Further,members of the plan have to pay a deductible each year before the insurance will pay any bills.Waata and his staff and families have health insurance with a(n) :

• A)HMO.
• B)PPO.
• C)RSO.
• D)DOC.

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Definitions:

Discount on Bonds Payable

The amount by which a bond's selling price is less than its face value or principal amount, typically reflecting market interest rates higher than the bond's coupon rate.

Issued at Face Value

A term indicating that a financial instrument, such as a bond, is sold for its original cost, not at a premium or discount.

Equipment

Tangible property used in operations, such as machinery and office equipment, which is not intended for sale.

Bond Payable

A long-term liability account that represents a promise to pay a series of payments over time and repay the principal amount at maturity.