What does days sales outstanding mean on the CPA exam?
Days sales outstanding. How long on average it takes to collect a receivable, measured as receivables divided by credit sales per day.
Which CPA exam sections use days sales outstanding?
Days sales outstanding appears in the BAR section of the CPA exam.
Other names for days sales outstanding
DSO
Related terms
- total asset turnover: Sales divided by average total assets.
- operating cycle: How long it takes to turn cash into inventory, inventory into a receivable, and the receivable back into cash.
- average total assets: The average of opening and closing total assets, used wherever a period flow like sales is compared to a balance.
- net profit margin: Net income divided by sales.
- accretion expense: The increase in an asset retirement obligation from the passage of time, measured by the interest method at the credit-adjusted risk-free rate in effect when the liability was first measured.
- net sales: Gross sales less returns, allowances and discounts.