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Accounting Information Systems, Hierarchical Coding and Control

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1.What are the three major types of funds found in most local government accounting information systems?

2. What is "hierarchical coding" with respect to a chart of accounts? How would hierarchical coding be useful for companies?

3. What is internal control? Why is it a fundamental part of accounting information systems?

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1. Three major types of funds found in most local government accounting systems are governmental funds, proprietary funds and fiduciary funds. Governmental funds include general fund, special revenue, capital project, debt service funds, and special assessment funds. Proprietary funds include the internal service funds and enterprise funds. Fiduciary funds account for assets that are held in trust by the government for the benefit of individuals or other entities.

2. With respect to a chart of accounts hierarchical coding is organizing information in a pyramid where each step of the pyramid is subordinate to the one above it. ...

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This solution explains accounting issues. The sources used are also included in the solution.

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