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GSA Certified General Services Administration Specialist
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Question Number 5
What does 'obligation' mean in the context of federal financial management?
The act of Congress appropriating funds to an agency
A legally binding commitment of federal funds, such as a contract or purchase order
The transfer of funds from one agency to another through an interagency agreement
The annual reporting of actual expenditures to OMB
✔ Correct Answer:
A legally binding commitment of federal funds, such as a contract or purchase order
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