George Costanza is an accountant for Vandelay Industries, a footwear and apparel company. The company's revenue and net income have increased by more than 100% over the past three years. During the same period, George and his colleagues in the Accounting Department have not received a raise or salary increase. Frustrated by not receiving a raise while the company has thrived, George has begun submitting expense reimbursements for personal purchases. George has a good relationship with his supervisor, and the supervisor simply "signs off" on George's expense reimbursements. George suspects that his supervisor knows that he is submitting personal expenses for reimbursement and is "looking the other way" because George has not received a raise in the past three years. Are George and his supervisor acting in an ethical manner? Why or why not?

George Costanza is an accountant for Vandelay Industries, a footwear and apparel company. The company's revenue and net income have increased by more than 100% over the past three years. During the same period, George and his colleagues in the Accounting Department have not received a raise or salary increase. Frustrated by not receiving a raise while the company has thrived, George has begun submitting expense reimbursements for personal purchases. George has a good relationship with his supervisor, and the supervisor simply "signs off" on George's expense reimbursements. George suspects that his supervisor knows that he is submitting personal expenses for reimbursement and is "looking the other way" because George has not received a raise in the past three years. Are George and his supervisor acting in an ethical manner? Why or why not?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter4: Adjusting Entries And The Work Sheet

Section: Chapter Questions

Problem 4A: Your client is preparing financial statements to show the bank. You know that he has incurred a...

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