STATEMENT OF ACCOUNT Meaning and
Definition
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A statement of account is a financial document that provides a summary of the activity and transactions within a specific financial period. Generally generated by banks or creditors, it includes information related to the account balance, transactions, and any charges or fees incurred during that period. The purpose of a statement of account is to provide an organized record of financial activities for the account holder's reference and verification.
The document typically includes details such as the account holder's name, account number, and a statement date indicating the period the statement covers. It also provides a starting and ending balance, reflecting the opening balance from the previous statement, as well as any deposits, withdrawals, or transfers made during the specified period. Moreover, it outlines any charges, fees, or interest incurred, including the nature of the charges and the dates they were applied.
A statement of account aims to ensure transparency and accuracy in financial transactions and helps individuals or businesses track their financial position and monitor their expenses. It allows account holders to reconcile their records with those of the financial institution and spot any discrepancies or errors. Additionally, it serves as a supporting document for auditing or tax purposes. By regularly reviewing and comparing statements of account, individuals can better manage their finances, identify potential issues, and make informed financial decisions.
Common Misspellings for STATEMENT OF ACCOUNT
