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A firm increased its days sales outstanding from 35 days to 43 days. This implies the firm is more efficient in collecting t
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Answer #1

Answer: False

Day's Sales Outstanding (DSO) is the Ratio to MEasure the average collection period that the Firm requires to collect the dues from the Customers. it always Represen with Days. A Low DSO is favorable and it takes fewer days to Collect, High DSO is unfavorable and it Takes more days to Collect the Dues. From the Above examples, DSO increased from 35 days to 43 days is not a favorable signal, it implies efficiency is dropped in collecting the debts

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