Question

The period of time during which budgetary resources may be used to incur new obligations (i.e., goods or services) is ____ from the period of time during which the budgetary resources may be used to incur expenditures (i.e., pay bills).

a) separate
b) distinct
c) different
d) distinctively

Answer 1

The period of time for incurring new obligations is separate from the period of time for incurring expenditures.

Step-by-step explanation:

The period of time during which budgetary resources may be used to incur new obligations is separate from the period of time during which the budgetary resources may be used to incur expenditures.

Let's take an example to understand this better. Consider a government budget that starts on January 1st and ends on December 31st. During this period, the government can allocate budgetary resources to incur new obligations like signing contracts or making agreements for goods or services. However, the actual payment or expenditures for these obligations can occur after the budget period.

So, the period of time for incurring new obligations can be different or separate from the period of time for incurring expenditures.