The spreading strategy is particularly attractive to aggressive speculators

At the beginning of 2011, Gannon Company received a three-year zero-interest-bearing $1,000 trade note. The market rate for equivalent notes was 8% at that time. Gannon reported this note as a $1,000 trade note receivable on its 2011 year-end statement of financial position and $1,000 as sales revenue for 2011. What effect did this accounting for the note have on Gannon's net earnings for 2011, 2012, 2013, and its retained earnings at the end of 2013, respectively?

a. Overstate, overstate, understate, zero b. Overstate, understate, understate, understate c. Overstate, overstate, overstate, overstate d. None of these

When consumers share a strong need that cannot be satisfied by an existing product, they are exhibiting latent demand

Indicate whether the statement is true or false