Legal Definitions - statement of account

A statement of account is a formal document that provides a detailed summary of financial transactions and the current balance of an account over a specific period. It is typically issued periodically by a financial institution or a business to its customer.

This document serves to inform the account holder of all activities, such as deposits, withdrawals, purchases, payments, and any fees or credits, allowing them to track their financial standing and verify the accuracy of the records.

• Monthly Bank Statement: Imagine a college student receives their monthly report from their bank for their checking account. This document lists every deposit made from their part-time job, each debit card purchase for groceries or books, ATM withdrawals, and any monthly service fees. At the bottom, it clearly shows the starting balance, the total of all transactions, and the final balance remaining in their account at the end of the month.

  Explanation: This is a classic example of a statement of account because it's a periodic report from a financial institution (the bank) detailing all financial activities (deposits, withdrawals, purchases, fees) and the resulting balance in the customer's checking account over a defined period.

• Credit Card Bill: Consider a small business owner who uses a company credit card for office supplies and travel expenses. Each month, they receive a statement from the credit card company. This statement itemizes every purchase made by employees, any payments the business has submitted, interest charges if a balance was carried over, and the total outstanding amount due by a specific date.

  Explanation: This illustrates a statement of account as it is a regular report from a creditor (the credit card company) outlining all charges, credits (payments), and the current outstanding balance owed by the cardholder for services and purchases made on credit.

• Utility Bill from a Service Provider: Picture a homeowner receiving their electricity bill. This statement details the amount of electricity consumed during the billing cycle, the cost per unit, any fixed service charges, a credit for a previous overpayment, and the total amount the homeowner needs to pay by the due date.

  Explanation: This functions as a statement of account because it's a periodic report from a service provider (a type of creditor) detailing the services provided, the charges incurred, any adjustments, and the final balance due from the customer.