Arkansas State Board of Embalmers and Funeral Directors Service Laws, Rules, and Regulations (LRR) Practice Exam

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What portion of contract proceeds must be deposited in a separate account?

Merchandise sales
Cash accommodation items
Service charges
Administrative fees

The correct answer is: Cash accommodation items

The correct answer indicates that cash accommodation items must be deposited in a separate account. This regulation is in place to ensure transparency and proper financial management within the funeral service industry. By requiring cash accommodation items to be kept in a separate account, it helps protect the consumer's funds, ensures that these specific funds are available when needed, and provides a clear audit trail. This practice is essential for maintaining ethical standards and regulatory compliance in the funeral industry, as it prevents the commingling of these funds with the general operating funds of the business. In contrast, merchandise sales, service charges, and administrative fees are typically handled within the general operating funds of the funeral home and do not necessitate the same level of separation. Thus, this regulation fosters a level of accountability that builds trust with consumers, ensuring their funds are reserved for specific purposes designated in the contract.