Johny Fuller

In: Business and Management

Submitted By JWenshTiu
Words 625
Pages 3
The ethics case of Johnny Fuller is a simulation of a business dilemma that we, through the different concepts learned in Accounting, can analyze and criticize inappropriate behavior and decision making.
To recall, the case was about Johnny Fuller paying his full-time employees in cheque, while he paid his part-time employees with cash directly taken from the cash register. Aside from which, albeit Mary Lake, Johnny’s public accountant, urging Johnny to pay all employees by cheque, Johnny himself still would not consent with her suggestion. From this case, we can clearly analyze and criticize the responsibilities of the stakeholder, the public accountant, as well as correct erroneous decisions through various concepts learned in Accounting. Johnny Fuller is the owner and the manager of Johnny’s Restaurant, making him the stakeholder of the enterprise. As a stakeholder, he is expected to be transparent, accountable, and responsible; however, the case portrays how he does not meet these expectations through his decisions. In fact, he went against the concept of adequate disclosure as he inappropriately paid his part-time workers with money directly taken from the cash registrar. Remember that all business transactions must be adequately supported by information recorded properly. Continuing, first reason why he went against the concept of adequate disclosure: the transaction behind taking money from the registrar and handing it to employees does not appear in the Financial Statements, thus making his transactions illegitimate. The ethical way of going about this is simply not taking money from the cash registrar, but instead, issue cheques for salaries, and then faithfully record these in the statements. In short, one must properly record all business transactions made in the enterprise. Second reason why this decision is unethical and unlawful is that all…...

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