Minnesota State Mortician Practice Exam

What is a Cash Advance Item?

1. An item obtained from a third party and paid for by the provider

2. A service provided without charge

3. A burial site service offered at a discount

4. An item provided by family members for the service

The correct answer is: An item obtained from a third party and paid for by the provider

A Cash Advance Item refers to an item that is procured from a third-party provider, with the payment typically being made by the funeral service provider on behalf of the family. This can include expenses such as flowers, transportation, obituary notices, or any other items that are not directly provided by the funeral home but are necessary for the service. The key characteristic of Cash Advance Items is that the funeral home acts as an intermediary, paying for these items upfront and later billing the family for the cost. This concept is important for understanding how funeral costs are structured, as it helps distinguish between services provided by the funeral home directly and additional expenses that may arise from outside vendors. The other options do not encompass the definition of Cash Advance Items: a service provided without charge does not involve any transaction; offering a burial site service at a discount does not align with the typical understanding of cash advances; and items supplied by family members would not involve any payment from the funeral provider. Understanding this distinction is crucial for both ethical and financial clarity in funeral service practices.