Question: Which statement best describes DSO? Other things held constant, the higher a firms DSO, the better its credit department. If a firm that sells on

Which statement best describes DSO?

Other things held constant, the higher a firms DSO, the better its credit department.

If a firm that sells on terms of net 30 changes its policy to 2/10, net 30, and if no change in sales volume occurs, then the firms DSO will probably increase.

If a firm sells on terms of 2/10, net 30, and its DSO is 30 days, then its aging schedule would probably show some past due accounts

DSO indicates the maximum number of days it takes a firms customers to pay their bills.

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