Function (Stuff)

I have a question regarding something about functions I’ve seen in numerous scripts, but have never understood. For example, in the XML and Flash Photogallery tutorial, there’s some AS like the following:

function  loadXML(loaded)  {
if (loaded) {
//Some AS
}
} else {
//more AS
}
}
xmlData.onLoad = loadXML;

The question I have is about the loadXML(loaded) part of the function, and the if(loaded) part. What is “loaded”? I know xml.onLoad will return a success true/false, but what is going on in that if statement? Usually there’s a if loaded = true, or something like that inside the ()'s, but here there’s just one word, so I’m assuming it’s checking if loaded != 0, but what’s controlling what loaded is? Can someone explain what’s going on?

I think if it was xmlData.onLoad = loadXML(loaded), it would make more sense, or if there’s only one thing in the ()'s of a function, does Flash default to that when you try to make something equal to it?