The number of days,on average,that a firm is extending credit to its customers is called
A)cash conversion period
B)days in inventory.
C)days sales outstanding.
D)cash flow cycle.

Question

Quizplus · Accepted Answer

Days sales outstanding (DSO) is the number of days, on average, that a firm is extending credit to its customers. It measures how efficiently a company is collecting its accounts receivables. A lower DSO indicates that a company is collecting its receivables more quickly, which can improve cash flow and overall financial health.

The Number of Days,on Average,that a Firm Is Extending Credit