AFSB 152 EXAM SCRIPT 2026 COMPLETE
QUESTIONS AND CORRECT ANSWERS
◉ 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
◉ Vast majority of small contractors use one method for both tax
reporting and financial reporting
Answer: F
◉ Bid bonds may not contain specific penal sums or bond penalties
(T/F)
Answer: T
◉ Through a sharing clause in a construction contract, the ___________
is responsible for cost overruns, and the _________ are responsible
cost underruns
Answer: contractor
owner and contractor
QUESTIONS AND CORRECT ANSWERS
◉ 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
◉ Vast majority of small contractors use one method for both tax
reporting and financial reporting
Answer: F
◉ Bid bonds may not contain specific penal sums or bond penalties
(T/F)
Answer: T
◉ Through a sharing clause in a construction contract, the ___________
is responsible for cost overruns, and the _________ are responsible
cost underruns
Answer: contractor
owner and contractor
