Funeral Home Business Management and Operations Flashcards
6 cards from real Funeral Service Test practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Funeral Home Business Management and Operations flashcards as text
A funeral home's cash advance items on the Statement of Funeral Goods and Services represent which of the following?
Answer: Third-party fees paid on behalf of the family
Cash advance items are fees paid by the funeral home to third parties on the family's behalf, such as obituary notices, flowers, or death certificates.
In a preneed funeral contract, which type transfers full ownership and control of the funds to an irrevocable trust?
Answer: Irrevocable preneed contract
An irrevocable preneed contract places funds in a trust that cannot be withdrawn by the purchaser and may qualify them for Medicaid asset exclusion.
Which law primarily governs the portability of preneed funeral contracts when a family moves to another state?
Answer: State preneed statutes
Preneed portability is governed by individual state statutes, and portability rights vary widely from state to state.
What is the term for the process of transferring a preneed funeral contract from one funeral home to another at the consumer's request?
Answer: Portability transfer
Portability transfer refers to the consumer's right to move a preneed contract to a different funeral provider, subject to state law.
A funeral home operating as a sole proprietorship means the owner bears which type of liability?
Answer: Unlimited personal liability
In a sole proprietorship, the owner has unlimited personal liability, meaning personal assets can be used to satisfy business debts.
Which financial statement shows a funeral home's revenues and expenses over a specific accounting period?
Answer: Income statement
The income statement (profit and loss statement) summarizes revenues and expenses for a specific period to show net income or loss.