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The Following Note Disclosure Appeared in a Recent Annual Report

question 31

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The following note disclosure appeared in a recent annual report of Halliburton:

Our receivables are generally not collateralized. Included in notes and accounts receivable are notes with varying interest rates totaling $12 million at December 31. At December 31, 39% of our consolidated receivables related to our United States government contracts, primarily for projects in the Middle East

-Explain the reason that Halliburton indicates that its receivables include notes with varying interest rates totaling $12 million at December 31. What significance does this have to the reader?


Definitions:

Population Parameter

A value that represents a characteristic of an entire population.

Interval Estimate

An estimate of a parameter that provides a range of possible values within which the parameter is expected to lie, specified by a confidence level.

Population Parameter

A numerical characteristic that describes an aspect of a population, such as its mean or variance.

Actual Value

The real value observed or measured, as opposed to an estimated or theoretical value.

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