The Following Note Disclosure Appeared in a Recent Annual Report

question 96

Essay

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 transactions that typically would affect the discount on notes receivable account.

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Definitions:

Substance-Induced Dementia

Cognitive impairment and memory issues directly attributable to the prolonged use of psychoactive substances, including drugs and alcohol.

Korsakoff's Syndrome

A chronic memory disorder typically associated with heavy alcohol consumption over a long period, characterized by short-term memory loss, "making up" stories (confabulation), and apathy.

Wernicke's Encephalopathy

A serious neurological disorder caused by thiamine (vitamin B1) deficiency, typically associated with chronic alcoholism, characterized by confusion, unsteady gait, and eye movement abnormalities.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing information and controlling responses.