Gabriela took out a five-year fixed-rate loan from a bank so that she could purchase a car. over the life of the loan, the inflation rate was much higher than anticipated. gabriela took out a five-year fixed-rate loan from a bank so that she could purchase a car. over the life of the loan, the inflation rate was much higher than anticipated. how did inflation affect gabriela or the bank? did inflation affect gabriela or the bank?

inflation benefited the bank because the money gabriela repaid the loan with was worth more than expected.

inflation benefited the bank because interest rates on fixed-rate loans rise at the same rate as the inflation rate.

inflation benefited gabriela because she repaid the loan with money that was worth less than expected.

inflation benefited gabriela because interest rates on fixed-rate loans are lowered when inflation rates rise.

For each separate case below, follow the 3-step process for adjusting the prepaid asset account at december 31. step 1: determine what the current account balance equals. step 2: determine what the current account balance should equal. step 3: record the december 31 adjusting entry to get from step 1 to step 2. assume no other adjusting entries are made during the year. a. prepaid insurance. the prepaid insurance account has a $4,700 debit balance to start the year. a re- view of insurance policies and payments shows that $900 of unexpired insurance remains at year-end. b. prepaid insurance. the prepaid insurance account has a $5,890 debit balance at the start of the year. a review of insurance policies and payments shows $1,040 of insurance has expired by year-end. c.prepaidrent.onseptember1ofthecurrentyear,thecompanyprepaid$24,000 for 2 years of rentfor facilities being occupied that day. the company debited prepaid rent and credited cash for $24,000.

Which of the following services will be provided by a full-service broker but not by a discount broker? i. research of potential investment opportunities ii. purchase and sale of stock at your request iii. recommendation of investments a. i and iii b. ii only c. iii only d. i, ii, and ii

Fortress international, a large conglomerate, procures a few component parts from external suppliers and also manufactures some of the key raw materials in its own subsidiaries. aside from this, the company does not solely depend on outside distributors to reach its customers. in fact, it has its own retail stores to distribute its products. in this scenario, which of the following alternatives to vertical integration is fortress international applying? a. concentric integration b. taper integration c. horizontal integration d. conglomerate integration