Which of the following mathematical equations is used to calculate days sales outstanding (DSO)?
A. Days sales outstanding (DSO) = Receivables + Daily credit sales
B. Days sales outstanding (DSO) = Payables + Daily credit sales
C. Days sales outstanding (DSO) = Receivables/Cost of goods sold
D. Days sales outstanding (DSO) = Accounts payable/Cost of goods sold
E. Days sales outstanding (DSO) = Receivables/Daily credit sales
Answer: E
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