Series 79: Days Sales Outstanding (DSO)

Taken from our FINRA Investment Banking Exam

Definition of the term Days Sales Outstanding (DSO)...

the average number of days it takes for a company to collect receivables during a given accounting period, such as a fiscal year. It equals the number of days in the accounting period over the receivables turnover ratio. Compare to receivables turnover ratio.

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Solomon Exam Prep Study Materials for the Series 79
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