In the garage conversion file, accounts receivable is $66,000 and average daily sales are $2,200. What is days sales outstanding?
Correct Answer
A) 30 days.
DSO is receivables divided by average daily sales: $66,000 / $2,200 = 30 days.
Why This Is the Correct Answer
DSO is receivables divided by average daily sales: $66,000 / $2,200 = 30 days.
Why the Other Options Are Wrong
Option B: 24 days.
24 days. is below the supported result for accounts receivable aging; it likely uses the wrong base, period, or account bucket.
Option C: 33 days.
33 days. is above the supported result for accounts receivable aging; it likely adds an unsupported amount or compares the wrong financial base.
Option D: 36 days.
36 days. is above the supported result for accounts receivable aging; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Accounts drawer for Monitoring Collection: label dso before counting dollars.
Reference Hint
Study anchor (closed-book): memorize Accounts receivable aging from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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