What is an appropriation account?
submitted by nilu

Ranco

Appropriation can have two different meanings, depending on where it is being used.

The first use is in regular accounting. A company shows how they've used the profit they've earned throughout the year. It's shown on an appropriation account, which goes in the income statement.

The second use is in government accounting. When budgeting is being done, tax money is "appropriated" to various accounts, depending on who gets approval for their projects. For example, a city may have an appropriation account for a rail system that needs upgrading.