account reconciliation

account reconciliation definition - finance
The act of matching a checkbook balance to its bank statement. Charges are subtracted from the checkbook balance; interest earned is added. Checks that havenÂ’t been cleared are added back into the checkbook balance. When these steps are completed, the checkbook balance and the balance shown on the bank statement should equal each other.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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