In federal appropriations, which term describes the maximum allowable obligations and expenditures?

• A. Time
• B. Purpose
• C. Expenditures
• D. Amount

Answer: (D)

In federal appropriations, the limit on how much you can commit and spend is defined by the amount of the appropriation. The amount represents the dollar ceiling that authorities the agency to incur obligations (commitments) and to make expenditures (actual outlays) up to that limit over the period the funds are available. Time determines how long the funds are available, not the size of the limit. The purpose specifies what the funds may be used for, and expenditures are the actual spending, not the ceiling. So the term that describes the maximum allowable obligations and expenditures is the amount.