Final answer:
The bond classification that guarantees the proper accounting and remittance of government funds is the Fiduciary Bond. It is used when handling the finances or property of others. Bonds overall dictate repayment terms for borrowed money.
Step-by-step explanation:
The license and permit bond classification that guarantees the principal will properly account for and remit government funds collected as required is a Fiduciary Bond. This type of bond is a financial contract that ensures the principal properly administers and manages assets and monies in the best interest of another party or parties. They are typically used when a person or entity is appointed to handle the finances or property of others, such as guardians, executors, trustees, and administrators of estates.
Bonds in general, represent a financial contract in which a borrower agrees to repay the amount that it borrowed. They specify an amount that one will borrow, the amounts one will repay over time based on the interest rate when the bond is issued, and the time until repayment. Bonds are issued by firms (corporate bonds), cities (municipal bonds), U.S. states (state bonds), and the federal government (Treasury bonds).
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