Identify that out of the following which facilitates a Not-for-Profit organisation in preparation of its financial statements at the end of an accounting period.

Trial Balance

The correct answer is option (4) : Trial Balance.

The element that facilitates a Not-for-Profit organisation in preparing its financial statements is Trial Balance. The Not-for-Profit Organisations in order to check the accuracy of the ledger accounts, prepare a trial balance which facilitates the preparation of accurate Receipt and Payment Account as well as the Income and Expenditure Account and the Balance Sheet.

* Receipt and Payment Account: This tracks only cash inflows and outflows, not the complete financial picture.

* Income and Expenditure Account: This shows income and expenses of the current year only, but not the organization's assets and liabilities.

* Balance Sheet: This is the final financial statement to know the financial position of the organisation

Therefore, the Trial Balance acts as the foundation for preparing the final financial statements. It ensures all accounting entries are recorded correctly and provides a starting point for summarizing the organization's financial position.