AR collection如果变长呢？offset了其他两个？

问题如下：

If a firm's inventory turnover and number of days of payables both increase, the effect on a firm's cash conversion cycle is:

选项：

A.to shorten it. B.to lengthen it. C.uncertain.

解释：

Cash conversion cycle = collection period + inventory period — payables period.

An increase in inventory turnover will decrease the inventory period and shorten the cash conversion cycle. An increase in the payables period will also shorten the cash conversion cycle.