Bank Reconciliation Statement

  

A bank reconciliation statement is the document that attempts to reconcile the company's bank account with its financial records. In that sense, it is the restoration of friendly relations between a company's banker and a company's accountant through the agreement on the deposits, withdrawals, and financial activity impacting a bank account every month and beyond (usually monthly and then annually).

The bank reconciliation statement gives a summary of a company's income versus expenditures from two sources to provide a concise picture of the company's financial health. Or lack thereof.

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Finance: What is an Income Statement?51 Views

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what is an income statement I made money yeah that's an income statement and it's [Man jumping up as money rains down]

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actually not all that far off from what accountants lawyers bankers and other

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forms of humans who count beans call an income statement well cleverly named an

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income statement is a statement of income it just states how you made your [Two guys stood at a food stall]

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income your french fries smoothie stand like who would have ever thought that

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would taste good sold a million units at five bucks each to give you five million

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dollars in revenue last year well you had some cost that went with

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those sales though you had to buy cups the french fries and other unnamed [Costs of french fries smoothie stand]

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ingredients and you had to pay 2 some ones to stand there and convince people

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to drink liquefied potatoes then you had to rent space for your stand and buy

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insurance and advertise and that abnoxious mascot in the potato costume

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you had five million in revenue and three million in expenses and this [revenue of french fries smoothie stand]

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number right here that's your pre-tax or operating profit

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you then take away your 30% in taxes which on two million dollars is 600

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grand and blammo that 1.4 million is your net income or [net income figure for business]

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after-tax profit this whole thing right here is your income statement and yeah [income statement for french fries smoothie business]

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it can and does get way way more complex than this but let's start with starch

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smoothies and work our way up [man at french fry stand thinking about selling sushi shakes]

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