Which Statement Is True

Which statement is true?

A) If a firm decreases its inventory period, its accounts receivable period will also decrease.
B) The longer the cash cycle, the more cash a firm typically has available to invest.
C) A firm would prefer a negative cash cycle over a positive cash cycle.
D) Decreasing the inventory period will automatically decrease the payables period.
E) Both the operating cycle and the cash cycle must be positive values.

Correct Answer:

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