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In government financial management, appropriations are considered expended when goods or services are received and accepted. This aligns with the accrual accounting principle, where expenses are recognized when they are incurred rather than when cash is disbursed. When goods or services are received, it indicates that the government has fulfilled its obligation, and the resources earmarked for that appropriation are effectively utilized. This is crucial for financial reporting and budgeting, as it reflects the actual consumption of resources.

The timing of recognizing expenditures is fundamental to maintaining accurate financial records and assessing the performance and accountability of government entities. This process ensures that expenditures are matched with the revenues they are intended to cover, providing a clearer picture of financial health. Understanding when appropriations are considered expended is essential for effective financial management and oversight within governmental entities.