FUNERAL MANAGEMENT GLOSSARY
EXAM QUESTIONS AND ANSWERS 100%
PASS
Account - ANS A formal record summarizing all the information relating to a single item in the
accounting equation.
Account form - ANS A balance sheet format with assets reported on the left side and the
liabilities and owner's equity reported on the right side.
Accountant - ANS An individual skilled in classifying, summarizing, and reporting financial
transactions.
Accounting - ANS The process of measuring, recording, classifying, and summarizing the
financial information of a business to aid in making fiscal decisions.
Accounting equation - ANS An equation showing the relationship between assets, liabilities,
and owner's equity. Expressed as assets = liabilities + owner's equity.
Accounts payable - ANS Amounts owed to creditors for goods or services purchased on
credit.
Accounts receivable - ANS Amounts due from a customer for services or sales performed on
credit.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Accounts receivable turnover - ANS The number of times the average amount of accounts
receivable is collected during a specific period.
Accrual basis - ANS An accounting method that recognizes revenue when earned and
expenses when incurred.
Acid-test ratio - ANS A ratio that shows the relationship of quick assets to current liabilities. It
is determined by dividing quick assets by current liabilities.
Activity analysis - ANS A measure of how effectively a business uses its resources.
Adjusting entries - ANS Journal entries recorded to update general ledger accounts at the end
of a fiscal period.
Active recruiting - ANS This means that an establishment is taking steps to fill a position.
Advertising - ANS The process of making the public aware of the products and services
offered by an organization.
Aftercare - ANS Services and appropriate helpful acts offered by funeral professionals after
the conclusion of the funeral/memorial service.
Age discrimination - ANS Treating an applicant, employee, or former employee who is 40
years or older less favorably because of their age.
Age of accounts receivable - ANS Measures the average time it takes to collect accounts
receivables.
Age Discrimination in Employment Act of 1967 (ADEA) - ANS A federal law which protects
people who are age 40 years or older from discrimination because of age.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Age of inventory - ANS Measures the average time required to sell inventory.
Air seal - ANS A method of vault closure that utilizes the air pressure created by placing the
dome of a vault onto the base of the vault.
Air tray - ANS A transfer container consisting of a wooden tray with a cardboard covering for
the casket, utilized when shipping human remains via airplane.
Alloy - ANS A substance composed of two or more metals.
Alternative container - ANS A simple, combustible container intended to meet basic
requirements for encasing and supporting human remains into the cremation chamber.
Alternative price lists - ANS Price lists which may be prepared for use within certain limited
situations such as children/infants, government agencies, and religious groups prescribed by the
FTC.
Ambiguous response - ANS A discomfiting response with more than one meaning.
Americans with Disabilities Act of 1990 (ADA) - ANS This act makes it illegal to discriminate
against a person with a disability in private companies and state and local governments.
Apostille - ANS A document that confirms notarization on an international basis.
Apprenticeship - ANS A formal relationship between a worker and sponsor that consists of a
combination of on-the-job training and related occupation-specific instruction.
Capital - ANS The account used to summarize the owner's equity in a business.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS AND ANSWERS 100%
PASS
Account - ANS A formal record summarizing all the information relating to a single item in the
accounting equation.
Account form - ANS A balance sheet format with assets reported on the left side and the
liabilities and owner's equity reported on the right side.
Accountant - ANS An individual skilled in classifying, summarizing, and reporting financial
transactions.
Accounting - ANS The process of measuring, recording, classifying, and summarizing the
financial information of a business to aid in making fiscal decisions.
Accounting equation - ANS An equation showing the relationship between assets, liabilities,
and owner's equity. Expressed as assets = liabilities + owner's equity.
Accounts payable - ANS Amounts owed to creditors for goods or services purchased on
credit.
Accounts receivable - ANS Amounts due from a customer for services or sales performed on
credit.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Accounts receivable turnover - ANS The number of times the average amount of accounts
receivable is collected during a specific period.
Accrual basis - ANS An accounting method that recognizes revenue when earned and
expenses when incurred.
Acid-test ratio - ANS A ratio that shows the relationship of quick assets to current liabilities. It
is determined by dividing quick assets by current liabilities.
Activity analysis - ANS A measure of how effectively a business uses its resources.
Adjusting entries - ANS Journal entries recorded to update general ledger accounts at the end
of a fiscal period.
Active recruiting - ANS This means that an establishment is taking steps to fill a position.
Advertising - ANS The process of making the public aware of the products and services
offered by an organization.
Aftercare - ANS Services and appropriate helpful acts offered by funeral professionals after
the conclusion of the funeral/memorial service.
Age discrimination - ANS Treating an applicant, employee, or former employee who is 40
years or older less favorably because of their age.
Age of accounts receivable - ANS Measures the average time it takes to collect accounts
receivables.
Age Discrimination in Employment Act of 1967 (ADEA) - ANS A federal law which protects
people who are age 40 years or older from discrimination because of age.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Age of inventory - ANS Measures the average time required to sell inventory.
Air seal - ANS A method of vault closure that utilizes the air pressure created by placing the
dome of a vault onto the base of the vault.
Air tray - ANS A transfer container consisting of a wooden tray with a cardboard covering for
the casket, utilized when shipping human remains via airplane.
Alloy - ANS A substance composed of two or more metals.
Alternative container - ANS A simple, combustible container intended to meet basic
requirements for encasing and supporting human remains into the cremation chamber.
Alternative price lists - ANS Price lists which may be prepared for use within certain limited
situations such as children/infants, government agencies, and religious groups prescribed by the
FTC.
Ambiguous response - ANS A discomfiting response with more than one meaning.
Americans with Disabilities Act of 1990 (ADA) - ANS This act makes it illegal to discriminate
against a person with a disability in private companies and state and local governments.
Apostille - ANS A document that confirms notarization on an international basis.
Apprenticeship - ANS A formal relationship between a worker and sponsor that consists of a
combination of on-the-job training and related occupation-specific instruction.
Capital - ANS The account used to summarize the owner's equity in a business.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
