• Which of the following isnottrue about the discount on short-term notes payable?

• When there is a discount on a note payable, the effective interest rate is higher than the stated discount rate.
• The Discount on Notes Payable account should be reported as an asset on the balance sheet.
• The Discount on Notes Payable account has a debit balance.
• Discount on Notes Payable is a contra account to Notes Payable.