AVERAGE PAYMENT PERIOD Definition

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AVERAGE PAYMENT PERIOD (APP) is the number of days an entity takes to pay off credit purchases. As the average payment period increases, cash should increase as well, but working capital will remain the same. Formula: accounts payable / (total annual purchases / 360).

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AMS see AUTOMATED MANIFEST SYSTEM.

MONETARY is anything pertaining to or having to do with money, money creation, money supply, and the government management of money.

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