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:

Selective Breeding

The process of breeding plants and animals for particular genetic traits, aiming to produce offspring with desired characteristics.

Genetically Influenced

Traits or characteristics that are shaped in part by an individual's genetic makeup.

Big Five

A model describing five core traits of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Frontal Lobe

A region of the brain located at the front of the cerebral cortex, involved in decision making, problem solving, control of purposeful behaviors, consciousness, and emotions.