Ontario Funeral Services License Practice Exam 2025 - Free Funeral Services Practice Questions and Study Guide

In the context of a pre-need funeral contract, understanding what constitutes a cash disbursement is crucial. A cash disbursement refers to any payment made that involves cash flow, particularly at the time of the service or in preparation for it.

The factor that does not align as a cash disbursement is money exchanged for services already provided. This is because such payments represent a transaction that has already occurred, meaning the cash flow is not occurring at the time of the pre-need arrangement or contract. Instead, this payment reflects settling an obligation for past services, not a future or planned expense associated with the pre-need services.

In contrast, fees for registering a death and catering options typically represent payments associated with the arrangements being made as part of the pre-need contract. Moreover, disbursements directly supplied by the establishment would also qualify as cash disbursements since they pertain to services or goods provided as part of the contractual agreement while the contract is still active.

Thus, the correct answer indicates that payments for previously rendered services do not fall under the cash disbursement category pertinent to a pre-need funeral contract.