During year 8, Creek Company determined that an insurance premium paid and entirely expensed in year 7 was for the period January 1, year 7 through January 1, year 9. How should Creek classify and treat the above transaction on its financial statements?

A. Creek Company should classify the transaction as a correction of an accounting error and restate its financial statements retroactively.

B.Creek Company should classify the transaction as a correction of an accounting error and make no retroactive adjustments.

C.Creek Company should classify the transaction as a change in accounting principle and restate its financial statements retroactively.

D.Creek Company should classify the transactions as a change in accounting principle