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The Following Note Disclosure Appeared in a Recent Annual Report

question 5

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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 are generally not collateralized. What significance does this have to the reader?


Definitions:

Social Facilitation

The phenomenon that people often perform better on tasks when in the presence of others compared to when they are alone.

Bystander Intervention

The act of stepping in to help when someone sees another person in a harmful situation, influenced by various psychological factors.

Emergency Squad

A specialized team or group of services that respond to and manage emergencies.

Bystander Effect

One reason people fail to help strangers in distress: The larger the group a person is in, the less likely he is to help, partly because no one in the group thinks it is up to him to act.

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