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Days Sales Outstanding (DSO): Definition & Formula

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question 1 of 3

The days sales outstanding formula calculates:

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1. Which of the following is incorrect about the days sales outstanding formula?

2. The formula used to calculate days sales outstanding is as follows:

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About This Quiz & Worksheet

Test yourself on the Days Sales Outstanding (DSO) formula and how to use it with this fun worksheet/quiz combo. Taking this quiz will cover what the DSO formula calculates, its characteristics, what it looks like and where the accounts receivable balance and gross sales can be located.

Quiz & Worksheet Goals

Use these quiz questions to measure your understanding of these topics:

  • What the days sales outstanding formula calculates
  • The characteristics of the DSO formula
  • What the days sales outstanding formula looks like
  • What do do when the number of days sales outstanding is greater than the company's payment terms
  • Where the accounts receivable balance and gross sales can be located

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the related DSO lesson
  • Interpreting information - verify that you can read information regarding the characteristics of the Days Sales Outstanding formula and interpret it correctly
  • Information recall - access the knowledge you've gained regarding what the DSO formula looks like
  • Knowledge application - use your knowledge to answer questions about what the DSO formula calculates

Additional Learning

Check out our interesting lesson Days Sales Outstanding (DSO): Definition & Formula to learn more about this subject. This lesson covers the topics found on the quiz, as well as:

  • The definition of accounts receivable and what it shows
  • The difference between gross credit sales and net credit sales
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