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The number of days it takes to collect cash from a credit sale is the:
ADays stock outstanding
BDays salary outstanding
CDays service outstanding
DDays sales outstanding
Answer & Solution
Correct answer: D. Days sales outstanding
1. It is also called the average collection period.
2. It applies to credit sales.
3. It is days sales outstanding.
_Source: OpenStax Principles of Finance 2e, Chapter 19, The Importance of Working Capital._
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