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What is dso and how is it calculated

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Reference no: EM133143442

Question - You are the Accounting Manager for a company. You are analyzing your AR and you realize that the average collection period is lengthening every month, and this trend started 8 months ago. What specific action or steps would you take to (1) identify items that are potentially causing the collection time to increase and (2) reverse the trend and reduce the average collection time.

(1) What is DSO and how is it calculated?

(2) What is AR Turnover and how is it calculated?

(3) Identity ONE action/step you would take to identify the potential items causing the increase in your average collection period and TWO actions/steps you would take to reduce the collection time.

Reference no: EM133143442

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