Asked by Kanisha Branner on Jul 03, 2024
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If a firm takes actions that reduce its DSO,then,other things held constant,this will lengthen its CCC.
DSO
Days Sales Outstanding (DSO) is a financial metric that calculates the average time in days that a company takes to collect payment after a sale has been made, indicating the efficiency of the company's credit and collections policies.
CCC
Cash Conversion Cycle, a metric that shows the time span between a company's outlay of cash for materials and receiving payment from the sale of goods.
- Understand the influence of cash management strategies on the Cash Conversion Cycle (CCC).
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Learning Objectives
- Understand the influence of cash management strategies on the Cash Conversion Cycle (CCC).
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