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

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Arkansas State Embalmers and Funeral Directors Service Exam. Utilize multiple choice questions and flashcards, each offering detailed explanations. Ensure exam success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

All income earned on cash accommodation funds becomes part of what?

Withdrawable income
Principal of respective accounts
Miscellaneous earnings
Operating revenue

The correct answer is: Principal of respective accounts

The correct choice states that all income earned on cash accommodation funds becomes part of the principal of respective accounts. This is essential because it emphasizes the importance of maintaining the integrity of these funds. Cash accommodation funds are typically established to cover certain types of funeral costs, and the income generated from these funds should be reinvested into the principal amount. This approach ensures that the fund continues to grow over time and remains sufficient to cover its intended purpose, adhering to legal and regulatory requirements. By adding the income to the principal, the overall financial health of those accounts is maintained, allowing for sustainable management of funds entrusted for end-of-life services. This helps in financial planning and ensures that adequate resources are available when needed.