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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REAL ESTATE see REAL PROPERTY.

BUSINESS COMBINATION is the merger of separate entities or operations of entities into one reporting entity.

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