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In which of the following cases a ratio will decrease:
Allowance for Doubtful Accounts
A reserve account used to estimate the amount of receivables that may not be collectible.
Current Assets
Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.
Allowance for Doubtful Accounts
A contra-asset account that represents the amount of accounts receivable a company does not expect to collect.
Accounts Receivable
The money owed to a business by its customers for goods or services that have been delivered or sold but not yet paid for.
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