In app purchases use up money in iTunes account?

I

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I'm curious if buying something inside a game uses up your money in your iTunes account. For example, let's say I bought a $100 iTunes gift card, if I buy something in an app for let's say 100,000 extra coins or some in app purchase like that for $75, will it use up the $100 and leave me with $25 leftover? Basically are iTunes gift cards used up when you purchase something inside an app like they are used to purchase music or apps?

Thanks!
 

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