Which of the following statements is most CORRECT?
A. If a firm takes actions that reduce its days sales outstanding (DSO), then, other things held constant, this will lengthen its cash conversion cycle (CCC).
B. If a firm "stretches" (i.e., delays paying) its accounts payable, then other things held constant, this will lengthen its cash conversion cycle (CCC).
C. If a firm busy on terms of 2/10 net 30, it should pay as early as possible during the discount period.
D. As a rule, managers should try to always use the free component of trade credit but should use the costly component only if the cost of this credit is lower than the cost of credit from other sources. E. If a firm carries a constant amount of receivables as sales decline, then, other things held constant, this will reduce its cash conversion cycle (CCC).