Which statement is true about DSO as defined in Resolute?

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Multiple Choice

Which statement is true about DSO as defined in Resolute?

DSO reflects how long, on average, it takes to collect payment after services are provided. In Resolute, it’s calculated as ending accounts receivable divided by the average daily charges or payments. The ending AR represents what’s still unpaid at period end, and dividing that by the typical daily revenue activity shows how many days’ worth of charges are tied up in receivables. That directly captures the efficiency of the collection process. The other statements don’t describe DSO: the time from service to claim submission is a service-to-submission timing metric, not how long to collect; total revenue divided by days in the period gives a daily revenue rate, not days to collect; and payroll outstanding relates to wages, not patient receivables.

DSO reflects how long, on average, it takes to collect payment after services are provided. In Resolute, it’s calculated as ending accounts receivable divided by the average daily charges or payments. The ending AR represents what’s still unpaid at period end, and dividing that by the typical daily revenue activity shows how many days’ worth of charges are tied up in receivables. That directly captures the efficiency of the collection process.

The other statements don’t describe DSO: the time from service to claim submission is a service-to-submission timing metric, not how long to collect; total revenue divided by days in the period gives a daily revenue rate, not days to collect; and payroll outstanding relates to wages, not patient receivables.

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