Match the term with its definition.
-The number of days, on average, that a firm extends credit to its customers
A)cash conversion period
B)days in inventory
C)days in payables
D)days sales outstanding (average collection period)
E)lock box
F)working capital cycle
G)working capital management

Question

Quizplus · Accepted Answer

Days sales outstanding (also known as average collection period) is the term that refers to the number of days, on average, that a firm extends credit to its customers.

Match the Term with Its Definition