What Is the Difference Between an Authorization and an Appropriation

question 7

Essay

What is the difference between an authorization and an appropriation?

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Definitions:

Credit

The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Supplies Account

An account used in accounting to keep track of the amount spent on supplies not yet used or consumed by the business.

Supplies Expense

The cost incurred from the consumption of supplies that are used in the operations of a business.

Adjusting Entry

An accounting entry made at the end of a period to allocate income and expenditure to the appropriate accounting period.