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What is payable deferral?

The period of time a firm takes to pay back their suppliers or creditors for their material purchases is known as payable deferral. Firms with...

What is the formula for the payables deferral period?

It is calculated by dividing payables by cost goods sold per day. Payables deferral period = Payables / Cost goods sold per day If Bobby hair salon has payables of $600 and the yearly cost of goods sold of $7,300.

What is payable deferral period?

Payable Deferral Period is the time a company takes to make payment to its suppliers. It is a financial ratio that considers accounts payable.

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