What is a common error when converting ARR to revenue projections, and how can you avoid it?

What is a common error when converting ARR to revenue projections, and how can you avoid it?

• A. Assuming all ARR is recognized immediately; align with contract terms and ASC 606; separate non-recurring charges.
• B. Treat ARR as revenue only upon payment receipt.
• C. Assume ARR will be recognized in full immediately without contract terms.
• D. Ignore ASC 606 when forecasting.

Answer: (D)