You are a new summer intern working for a major professional services firm. during your lunch break each day, you and a fellow intern, bob, eat at a local sandwich shop. one day, bob’s girlfriend joins you for lunch. when the bill arrives, bob pays with a company credit card and writes the meal off as a business expense. bob and his girlfriend continue to be "treated" to lunch for a number of days. you know bob is well aware of a recent memo that came down from management stating casual lunches are not valid business expenses. when you ask bob about the charges, he replies, "hey, we’re interns. those memos don’t apply to us. we can expense anything we want. does bob really believe that what he is doing is not wrong? does it matter? what are you going to do about it?

Kiona co. set up a petty cash fund for payments of small amounts. the following transactions involving the petty cash fund occurred in may (the last month of the company's fiscal year). may 1 prepared a company check for $350 to establish the petty cash fund. 15 prepared a company check to replenish the fund for the following expenditures made since may 1. a. paid $109.20 for janitorial services. b. paid $89.15 for miscellaneous expenses. c. paid postage expenses of $60.90. d. paid $80.01 to the county gazette (the local newspaper) for an advertisement. e. counted $26.84 remaining in the petty cashbox. 16 prepared a company check for $200 to increase the fund to $550. 31 the petty cashier reports that $380.27 cash remains in the fund. a company check is drawn to replenish the fund for the following expenditures made since may 15. f. paid postage expenses of $59.10. g. reimbursed the office manager for business mileage, $47.05. h. paid $48.58 to deliver merchandise to a customer, terms fob destination. 31 the company decides that the may 16 increase in the fund was too large. it reduces the fund by $50, leaving a total of $500.