Final answer:
The correct answer is option C: Casting errors do not affect the trial balance. Errors of Omission and Compensating errors can affect the trial balance.
Step-by-step explanation:
The correct answer to the question is Option C: Casting errors do not affect the trial balance. Casting errors refer to mistakes made in the addition or subtraction of amounts in the ledger. These errors will be present in individual accounts, but they will not impact the balance of the trial balance because the total debits will still equal the total credits.
Errors of Omission, on the other hand, occur when a transaction is completely left out, such as omitting to record a sale or purchase. Compensating errors involve two or more errors that offset each other, resulting in a balance that is still correct.
By ensuring the trial balance is error-free, accountants can verify the accuracy of the recorded transactions and identify any mistakes that need to be corrected before preparing the financial statements.