f. How does CAC record revenue from its service contracts? How would signing a significant number of short-term service contracts (less than 12 months) near June 30 (CAC's year-end) affect the service revenue and accounts receivable reported at year-end? What effect would the timing of reporting revenue from these contracts have on the company's current assets and total assets, and on its current and debt-to-asset ratios? Is the revenue recognition policy used by CAC for the ten-month service contracts in accordance with the revenue recognition principle? Why or why not? What would be a more appropriate policy for recognizing short-term contract revenue