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accounting 2 discussion 1 week 1

accounting 2 discussion 1 week 1 - Accounting II Week 1...

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Accounting II Week 1 Discussion 1 Ethical Issue – Chapter 15 This example has a few ethical issues the first being the owner’s business practices. He is, every couple of months, purchasing Rolex watches and having the local jeweler bill his company for miscellaneous services from the jeweler in the amount of $5000 and calling them a “selling expense”. Frank is intentionally being vague because he cannot just say what the expense is without raising some eyebrows. His actions are unethical, even though he himself has probably justified, to himself, that the Rolex watches are a “business expense”. Frank, the owner of the dealership, has been frequently giving away the watches to the regional sales managers and executives. Frank gives them the watches and in return Frank’s dealership receives more cars. In a sense Frank is a good business man trying to better his company but he is going about things the wrong way. It is unfair to other dealerships who compete fairly for said cars to have to be put behind Frank and his Rolex watches.
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