Which of the Following Federal Government Accounting Terms Is Most

question 27

Multiple Choice

Which of the following federal government accounting terms is most similar to an appropriation, as that term is used in state and local government accounting?

• A) Apportionment.
• B) Allotment.
• C) Commitment.
• D) Obligation.

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Definitions:

Disposable Income

The pool of funds households have for saving and spending pursuits after income taxes are factored out.

Consumption

The use of goods and services by households, constituting a major part of the economy's total output.

Permanent Income Hypothesis

A theory proposed by Milton Friedman suggesting that an individual's consumer behavior is determined by their long-term income expectations rather than their current income.

Services

Intangible products offered to consumers and other businesses, such as banking, education, and healthcare, which unlike goods, are not physical objects.