Which of the following is not true about the discount on short-term notes payable?

		The Discount on Notes Payable account has a debit balance.
		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.
		Discount on Notes Payable is a contra account to Notes Payable.