The National Directory of Certified Public Accountants

Ask A CPA - Financial Statements

What Is The Average Payment Period Ratio ?

The ratio illustrates the average amount of time needed to pay the companies accounts payables. The ratio is calculated by taking the Accounts Payable amount divided by (Annual purchases divided by 365)

If you need professional help with "Financial Statements" or have other tax questions, we can help you find a local licensed CPA for a free, no-obligation consultation.