Q11-3 Q114 Q11-5 Q11-6 011-7 The term obligation is commonly used in federal government accounting. What is an obligation, and what is its equivalent in state and local government accounting? What are earmarked funds? Which funds are characterized as earmarked? Briefly describe the federal accounting standards regarding inventory and related property; prop- erty, plant, and equipment; and liabilities. What is the budgetary equation? Briefly describe the components of each side of the equation. What is the nature of the account Fund balance with Treasury? When is that account debited, and 35