How do accounts receivable and accounts payable affect cash flow?

• A. AR accelerates inflows; AP delays outflows; both improve liquidity timing.
• B. AR delays inflows; AP accelerates outflows; both improve liquidity timing.
• C. AR delays inflows; AP delays outflows; both affect liquidity timing.
• D. AR delays inflows; AP accelerates outflows; both affect liquidity timing.

Answer: (C)