In federal government accounting,recording the estimated amount of equipment prior to actually placing an order or entering into a contract is called a(an)

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Recording the estimated amount of equipment prior to actually placing an order or entering into a contract is called a commitment in federal government accounting. A commitment represents a binding agreement to purchase goods or services, and is recorded as an encumbrance or a liability, depending on the accounting system used by the agency. Obligation refers to an agency's legal liability for goods or services that have been ordered or received, whereas apportionment refers to the process of distributing budget authority to subunits of an agency. Allotment refers to the process of distributing funds to specific programs or activities within an agency.

In Federal Government Accounting,recording the Estimated Amount of Equipment Prior