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

Question

Quizplus · Accepted Answer

The average number of days that a firm extends credit to its customers is called days sales outstanding (DSO) or accounts receivable turnover. The cash conversion period, days in inventory, and cash flow cycle are related to other financial aspects of a firm's operations.

The Number of Days, on Average, That a Firm Extends