AFSB 152 2026 STUDY GUIDE
PRACTICE QUESTIONS DETAILED
SOLUTIONS
◉ To find clarity on payment bond terms, you can... Answer: consult the
applicable and relatively stable case law that does define the terms
◉ A surety needs additional information, such as _____________, to
adequately evaluate the work-backlog risk of granting this bond Answer:
the contractor's overall capacity and financial capacity
◉ The Schedule of __________ is one of the most important schedules
used by producers and underwriters when analyzing a contractor's
financial statement Answer: construction in progress
◉ A potential problem a project owner could encounter when using a
design/build contractor is that government requirements may require a
seal on the plans from a professional engineer or a registered architect,
and the design/build contractor may not have a designer on staff (T/F)
Answer: T
◉ The design/build contractor charges a separate design fee in addition
to the construction overhead and profit (T/F) Answer: F
◉ You can recognize a small companies tax method by looking at their
balance sheet (T/F) Answer: T
PRACTICE QUESTIONS DETAILED
SOLUTIONS
◉ To find clarity on payment bond terms, you can... Answer: consult the
applicable and relatively stable case law that does define the terms
◉ A surety needs additional information, such as _____________, to
adequately evaluate the work-backlog risk of granting this bond Answer:
the contractor's overall capacity and financial capacity
◉ The Schedule of __________ is one of the most important schedules
used by producers and underwriters when analyzing a contractor's
financial statement Answer: construction in progress
◉ A potential problem a project owner could encounter when using a
design/build contractor is that government requirements may require a
seal on the plans from a professional engineer or a registered architect,
and the design/build contractor may not have a designer on staff (T/F)
Answer: T
◉ The design/build contractor charges a separate design fee in addition
to the construction overhead and profit (T/F) Answer: F
◉ You can recognize a small companies tax method by looking at their
balance sheet (T/F) Answer: T
