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  • Directions: State whether the following statement is True...
Multiple choice

Directions: State whether the following statement is True Or False.

A company should keep large balances of cash in hand so that it can meet all contingencies.

  1. True

  2. False

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Holding excessive cash is inefficient as it does not earn a return and represents idle capital that could be invested elsewhere.

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