Accounting for IGCSE & O level - Advanced Principles (Section 3 - No. 44)
Which of the following best describes what happens when holding too much cash?
It makes the company less productive.
It can be used in a bank deposit account and will earn some income in the form of interest.
It helps to increase expenses and expand the business.
All of the above.
Explication
Holding too much cash makes the company less productive, can be used in a bank deposit account, and it may help to increase expenses and expand the business.