Final answer:
The Days Sales Outstanding (DSO) ratio, synonymous with Average Collection Period (ACP), is represented by the Accounts Receivable Turnover Ratio, which evaluates the efficiency of a company's collections.
Step-by-step explanation:
The Days Sales Outstanding (DSO) ratio, also known as the Average Collection Period (ACP), is a financial metric used to assess the average number of days it takes for a company to collect payment after a sale has been made. The correct answer to which ratio represents this is d) Accounts Receivable Turnover Ratio.
This ratio is calculated by dividing the total credit sales by the average accounts receivable during a certain period. It gives insight into the effectiveness of a company's credit and collection policies. A lower DSO indicates that the company is able to quickly collect payments, whereas a higher DSO suggests that the company's collection process may be less efficient or that its credit terms are too lenient.