Asked by Araceli ArredondoLona on Jun 27, 2024
Verified
An employee overstates his reimbursable expenses in one period in order to receive needed additional cash.Since he intends to reduce his expenses the next period by the current overstatement,this act is not considered fraudulent.
Reimbursable Expenses
Costs that an employee or business incurs on behalf of a client or company, which are expected to be refunded.
Fraudulent
Involves intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.
- Recognize the significance of ethical behavior in accounting practices.
Verified Answer
LA
Lucky AtwalJun 29, 2024
Final Answer :
False
Explanation :
Overstating reimbursable expenses is still considered fraudulent, even if the employee intends to reduce expenses in the next period to compensate for the overstatement. This behavior can still result in financial loss for the company and ultimately harms the trust and integrity of the employee.
Learning Objectives
- Recognize the significance of ethical behavior in accounting practices.
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