In the flow of funds, which step comes immediately after Obligation?

• A. Outlay
• B. Commitment
• C. Allotment
• D. Apportionment

Answer: (A)

The flow of funds moves from creating a liability to actually paying cash. After an obligation is recorded—the formal, legal liability to pay for goods or services—the next step is the outlay, which is the actual disbursement of cash to satisfy that obligation. In other words, obligation sets up the obligation to pay, and outlay is the moment the government writes the check (or makes the electronic payment) to fulfill it.

For context, earlier steps like apportionment and allotment distribute and authorize funds, and commitment/procurement actions precede formal obligations. But once the obligation exists, the cash must be paid out, making outlays the immediate successor in the flow.