In December 2021, Kasey Insurance Co. received $500,000 in premiums for a two-year property insurance policy. The company recorded the transaction by debiting cash and crediting insurance premium revenue for the full amount. An internal audit conducted in early 2022 flagged this transaction. The appropriate accounting treatment is that Multiple Choice O Kasey needs to correct an accounting error Kasey is required to adjust a change in accounting estimate prospectively Kasey is not required to make any eccounting adjustments Kasey has made a change in accounting principle, requiring retrospective adjustment Submit