Appropriation

An appropriation is a directive to spend funds in a particular way and within a restricted period of time. Thus, an appropriation controls the expenditure of funds. Appropriations are most commonly used by governments, where there is usually a limited amount of revenue, so great care must be taken to control expenditures. For example, an appropriation may be made to set aside funds for a highway improvement project or to construct a government building.

Related Courses

Governmental Accounting