Question
Danielle is in charge of the $250 petty cash for Young's Auto Repair. When an employee needs a special part that is not in the
Danielle is in charge of the $250 petty cash for Young's Auto Repair. When an employee needs a special part that is not in the inventory, Danielle takes money from the petty cash to buy the part. One day, Danielle is short of cash and needs lunch money. She decides to borrow $15 that she will pay back on payday. Payday is in three days. Danielle continues this practice for three days for a total of $45. She does not have enough to pay the petty cash on payday. When she reconciles the petty cash, she records the $45 as a cash short/over expense. This is the first time she has done this. Requirement1: Are Danielle's actions ethical? Requirement 2: What should Danielle do to fix this problem if there is one? Requirement 3: Is there an Accounting Policy the business could have put into practice that may would have prevented Danielle from borrowing the money?
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