In Reality, Who Bears the Cost of Surety Bonds That

question 24

Essay

In reality, who bears the cost of surety bonds that the GC has to provide to the owner and why?

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Definitions:

Direct Method

An accounting method used in the cash flow statement to show the specific sources of operating cash receipts and payments, contrasting with the indirect method.

Investing Activities

Transactions involving the purchase and sale of long-term assets and investments, a component of a company's cash flow statement.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Direct Method

A cash flow statement preparation method that itemizes actual cash receipts and payments.