The correct answer is: D. Arithmetical accuracy of financial transaction.
A trial balance is a list of all the accounts in a company’s general ledger, with their balances at a specific point in time. It is used to verify that the total debits equal the total credits in the ledger. This helps to ensure that the financial statements are accurate.
A trial balance does not provide any information about a company’s profit or loss, cash transactions, or credit transactions. These are all separate financial statements that are prepared using information from the general ledger.
Profit and loss is a statement that shows a company’s revenues, expenses, and net income (or loss) for a specific period of time. Cash flow statement shows a company’s cash receipts and cash payments for a specific period of time. And, a balance sheet shows a company’s assets, liabilities, and equity at a specific point in time.