Accounting Dictionary - Letter A

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounts payable turnover
measures how many times per year a company pays off its average accounts payable to suppliers. To calculate this ratio, the cost of sales is divided by the average accounts payable. The average accounts payable can be determined by adding beginning accounts payable to ending accounts payable and dividing the result by two.
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