What are funds approved and set aside by the fiscal officer for acquisition of goods and services called?

The term that best fits the description of funds approved and set aside by the fiscal officer for the acquisition of goods and services is known as a commitment. In the context of budgeting and financial management, a commitment represents a formal agreement to spend funds, serving as a preliminary step before an actual expenditure occurs.

When a commitment is made, it indicates that the funds are earmarked for particular purposes, which ensures accountability and helps maintain control over budgeted resources. This is crucial for organizations, including military branches, to ensure that funds are managed effectively and allocated appropriately for upcoming expenses.

In contrast, the other terms have distinct meanings that do not align with this definition. An obligation refers to a legal commitment to pay for goods or services received, while expenditure is the actual outflow of money spent on goods and services. Accrual relates to accounting practices that recognize revenue and expenses when they are incurred, rather than when cash is exchanged. Therefore, the concept of a commitment accurately captures the idea of funds being specifically set aside with the intention to use them in the future for procurement.