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Average Payment Period is the total opposite of the Average Collection Period. This is the average time taken by the company to pay off its credit purchases.

Formula:

APP = Accounts Payable / (Annual Credit Purchases / 365)

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13y ago

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Average Payment Period is the total opposite of the Average Collection Period. This is the average time taken by the company to pay off its credit purchases.Formula:APP = Accounts Payable / (Annual Credit Purchases / 365)


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