How do you compute "Days Sales Outstanding"? Define the relationship between DSO and Accounts Receivable Turnover.

DSO Explains within howmany days your  Accounts Receivable is collected during a particular period.

Calculation: Accounts receivable / Average Daily Sales  Outstanding

A meassure to control credit, Intensify  Debt Collection on Customer Outstanding and reduce possibilities of Bad and Doubtful debts.  Also useful for Extension of Credit limit to Existing reputed customers to improve sales figures.