Business Glossary

1. authorization of a governmental unit to spend money within specified restrictions such as amount, time period, and objective. There must be prior approval for such expenditure.
2. distribution of net income to various accounts.
3. allocation of retained earnings for a designated purpose such as for plant expansion. See also appropriated retained earnings .

money set aside for a specific purpose. Also, in real estate, the setting aside of land for a public use.

1. setting aside land for a public use.
   Example: Abel plans to develop a subdivision in Pleasantville. In order to obtain permission from the city council, Abel is required to appropriate 2 acres to the city for construction of an elementary school.

2. money set aside by a budgetary authority for a specific purpose.
   Example: The town provided a $1 million appropriation for construction of a library.