# Days Sales Outstanding (DSO): Definition & Formula

Instructions:

question 1 of 3

### The days sales outstanding formula calculates:

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

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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