Answer :
Final answer:
A government can spend the amount represented by appropriations minus encumbrances, which accounts for budget allocated to specific expenses while considering obligations yet to be fulfilled. Thus, option C) appropriations minus encumbrances is the correct answer.
Explanation:
At any point in time, a government will indeed be able to spend an amount which can be represented by the formula appropriations minus encumbrances. Appropriations refer to the authorized budget amount set aside for specific expenditures, while encumbrances represent commitments or claims against these appropriations, often in the form of purchase orders or contracts, which are yet to be fulfilled. Therefore, the government's available spending amount is the leftover appropriations once these obligations are accounted for. This ensures that government spending stays within the authorized limits set by the appropriations.
