NBE Funeral Directing Practice Exam

In funeral directing, what is a Cash Advance?

1. An initial payment for funeral services

2. An accommodation or cash disbursement

3. A donation to the family from the funeral home

4. A fee charged for storage of the body

The correct answer is: An accommodation or cash disbursement

A Cash Advance in funeral directing refers to an accommodation or cash disbursement typically made by the funeral home on behalf of the family for specific services or goods that are necessary but not provided by the funeral home itself. This could include expenses such as flowers, obituary notices, cemetery or cremation fees, and other related expenses incurred during the funeral process. This concept is crucial because it allows families to have a single point of coordination for various costs associated with the funeral. The funeral home will generally pay these costs upfront and then include them in the overall bill provided to the family. This helps streamline the process, ensuring that families do not have to manage multiple payments to different providers during a difficult time. The other options do not accurately define a Cash Advance. An initial payment for funeral services pertains to the contract for services rather than disbursements. A donation from the funeral home would be more of a charitable contribution and does not reflect the nature of a Cash Advance. Lastly, a fee for storage of the body relates to a specific service provided by the funeral home, which is distinct from the concept of an advance payment made for third-party services.