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What are the ramifications if a firm has too much cash on hand?

In: Business Accounting and Bookkeeping [Edit categories]

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The largest ramification of too much cash on hand is the loss of interest being earned in a high rate account. If a company invests their money into a high rate account, they can draw the interest off of the money.

First answer by ID1244005948. Last edit by ID1244005948. Question popularity: 17 [recommend question].

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