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    Question

    What financial ratio measures the number of days a

    company can cover its cash expenses without relying on external financing for a certain period?
    A Quick Ratio Correct Answer Incorrect Answer
    B Debt-to-Equity Ratio Correct Answer Incorrect Answer
    C Basic Defense Interval Correct Answer Incorrect Answer
    D Earnings per Share (EPS) Correct Answer Incorrect Answer

    Solution

    Basic Defense Interval ratio tells the Number of days for which the company can cover its cash expenses without the aid of additional financing. Formula: (Cash & Bank balances + Net Receivables + Marketable Securities) / Daily Operating expenses.

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