Due and Demandable Obligations

The Government Accounting Manual (GAM) for National Government Agencies defines obligation as: Obligation is an act of a duly authorized official which binds the government to the immediate or eventual payment of a sum of money. Obligation maybe referred to as a commitment that encompasses possible future liabilities based on current contractual agreement. Obligation has two kinds: 1) Due and Demandable Obligations and 2) Not Yet Due and Demandable Obligations. Due and Demandable Obligations (DDO) pertain to the goods purchased which have already been delivered or services which have already been rendered. For instance, a government agency has ordered office supplies from a store...