What is a bank statement and how does it assist in identifying discrepancies?

A bank statement is a document provided by a financial institution that summarizes all transactions in a bank account over a specific period, typically monthly. It includes details such as deposits, withdrawals, fees, and interest earned. By reviewing a bank statement, account holders can easily identify discrepancies, such as unauthorized transactions or errors, by comparing the statement information against their own records. This helps ensure financial accuracy and prevents potential fraud.