AVERAGE SETTLEMENT PERIOD Definition

Bookmark and Share

AVERAGE SETTLEMENT PERIOD is calculated: For Debtors = Trade Debtors X 365 days / Credit Sales
For Creditors = Trade Creditors X 365 days / Credit Purchases.

Learn new Accounting Terms

BANK is a financial entity that is licensed by a government to receive monetary deposits: commercial/retail banks and investment banks. In most countries, banks are regulated by a national government or central bank. 

NET PURCHASES are those items purchased less returns, discounts and allowances on those purchases.

Suggest a Term

Enter Search Term

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