AVERAGE PAYMENT PERIOD Definition

Bookmark and Share

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).

Learn new Accounting Terms

REMIC is Real Estate Mortgage Investment Conduit. Refers to U.S. legislation, created with the Tax Reform Act of 1986, that allowed for the issuance of collateralized mortgage obligations.

MANUAL CONTROLS are controls performed manually, i.e., not by computer.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.