Which Of The Following Is Not True About The Discount On Short-Term Notes Payable?

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Which Of The Following Is Not True About The Discount On Short-Term Notes Payable?

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