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The actions that one would take when reconciling a bank statement are:

  • Identify the bank statement balance of the cash account.
  • Identify and list any unrecorded deposits and any bank errors understating the bank balance.
  • Add them to the bank balance.
  • Identify and list any outstanding checks and any bank errors overstating the bank balance.

What is a bank statement?

A bank statement is a list of all transactions for a bank account over a set period.

The statement includes deposits, charges, withdrawals, at the beginning and ending balance for the period.

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