Appropriation Account

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DEFINITION of 'Appropriation Account'

A governmental accounting term. The appropriation account is the account of any governmental agency that receives a credit. An appropriation account is reduced by the costs incurred by the agency to perform the task or complete the project for which the credit was given.

BREAKING DOWN 'Appropriation Account'

Appropriation accounts come into play when governments create their budgets. Appropriation credits are taken out of estimated revenues from taxes and trade and allocated to the proper agencies. Credits in appropriation accounts that are unused may be redistributed to other agencies or used for other purposes.

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