Dallas Corporation has a practice of discounting the notes receivable to the bank to increase its cash

Question:

Dallas has a practice of discounting the notes receivable to the bank to increase its cash flow. Since the maker of the notes receivable has always paid the bank, Dallas does not list the notes receivable as a contingent liability. Is this an ethical practice? What would be compromised if the liability did not appear in the notes of the annual report?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...