Which One of These Statements Is Correct? Assume All Else

Which one of these statements is correct? Assume all else held constant.

A) A decrease in the accounts receivable turnover rate decreases the cash cycle.
B) The cash cycle is equal to the operating cycle minus the inventory period.
C) A negative cash cycle is preferable to a positive cash cycle.
D) A decrease in the accounts payable period shortens the cash cycle.
E) The cash cycle plus the accounts receivable period is equal to the operating cycle.

Correct Answer:

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