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Janice and Shane are both senior software analysts. They have worked together on projects for six years and get along very well. Janice is anticipating the arrival of her first child and will not be able to work on a full-time basis in the future. Shane is also contemplating opening his own business as a home media installation consultant and does not want to continue to work full time. They both need some income. Which of the following alternative job structures would be best for Janice and Shane?
Prepaid Expenses
Costs paid in advance for goods or services to be received in the future, treated as assets until used.
Acid-Test Ratio
A financial metric that measures the ability of a company to pay off its current liabilities with its quick assets such as cash, accounts receivable, and short-term investments.
Marketable Securities
Financial instruments that can be easily converted into cash with minimal loss of value, often used for short-term investments.
Current Liabilities
Short-term financial obligations that are due within one year or within the normal operating cycle of the business.
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