 Hello, in this lecture we will define bank statement. According to fundamental accounting principles while 22nd edition, the definition of bank statement is bank report on the depositor's beginning and ending cash balances and a listing of its changes for a period. So when we're talking about the bank statement, we are of course talking about a document from the bank, not internally generated. The statement is from the bank. We often then will compare the bank statement to our internal records. So a bank statement might look something like this. We're going to have it usually monthly. We're going to get the bank statement, whether it be by paper or electronically. Nice to have it monthly because it's nice to have monthly reconciliations and go through that monthly reconciliation process. In this case, we have it for February. Generally, the bank statement from the bank would look something like this. We got the beginning balance. We've got the transactions summarize in terms of total additions and total withdrawals. And then we have the ending balance as of the end of the month. We then have some type of breakout of that detail. And that usually is going to be recorded when it'll have the date of deposits in this case, as well as the deposit amounts. And it will have the checks and withdrawals. And it'll have the dates and the check numbers and the amount and other types withdrawals that happen that are not going to be checks. This is the detail backing up the activity for the month. We typically will take this bank statement and use it in order to create a bank reconciliation comparing the bank statement to our books. In this case, our general ledger taking and tying off everything that happened from the bank statement to our records. And by doing so, we can then have a third party verification and check against what we have put into the books. And that gives us a huge check on whether or not we have recorded everything. Probably one of the biggest internal controls, probably the second most biggest internal control for any size of business, whether it be large or small, after the double entry accounting its system itself to be put in place.