Which of the following statements is TRUE regarding the cash metric-based analysis discussed in Chapter 5? For purposes of cash metric-based analysis, the monthly cash expenses are calculated by taking total cash expenses reported on the income statement and dividing by 12. Including cash equivalents in the calculation of the ratio of cash to monthly cash expenses typically reduces the ratio. Beyond the time period indicated by the ratio of cash to monthly cash expenses, a company would always report a net loss on its income statement. The ratio of cash to monthly cash expenses indicates how long a company could operate on its available cash. If a company reports positive cash flows from operating activities, it is said to have a monthly cash burn. Calculator One employee handles cash receipts from customers. Another employee records cash receipts in the accounting records. Which control procedure is illustrated by the above scenario? Procedures are used to safeguard assets. Competent employees are hired to perform the duties they are assigned. Custody of assets and accounting for the assets is separated, Duties within the accounting department are rotated between employees Security measures are used to ensure accounting data is reliable. Under the allowance method of accounting for uncollectible accounts, when is bad debt expense recorded? When cash is collected from the customer. When uncollectible accounts are estimated and adjusted. When an account is deemed uncollectible. When a previously written off account is reinstated. When the sale is recorded