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Why might a company hold low-yielding marketable securitieswhen it could earn a much higher return on operating assets?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 33CYBK

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Why might a company hold low-yielding marketable securities
when it could earn a much higher return on operating assets?

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