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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PAYABLES TURNOVER is calculated: Payables Turnover = Purchases / Payables.

FORM 1065 (Schedule K-1) is the domestic partnership income tax return form used in the U.S.

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