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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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?

 

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