Days Sales Outstanding (DSO)
A popular measure of accounts receivable performance: A/R is divided by sales multiplied by the days in the period.
DSO = [Accounts Receivable Balance / Sales] X Days In The Period
A claim against a customer for services rendered or goods sold on credit.
A right to payment or other equitable remedy in the event of a breach of contract.
The privilege of buying goods, services or borrowing money in return for a promise of future payment.
