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
Answer: d. None of these
Business
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A) treaty reinsurance B) facultative reinsurance C) retroceding insurance D) assuming reinsurance"
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To minimize negative effects that may arise from disguising the purpose of the qualitative research, the respondents should be informed up front that the true purpose of the research is being disguised so as not to bias the responses
Indicate whether the statement is true or false
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