An account statement is a document provided by a financial institution that summarizes the transactions and balances of a specific account over a set period, usually monthly. It includes details such as deposits, withdrawals, fees, and interest earned, helping account holders track their financial activity. Account statements are essential for managing personal finances, as they provide a clear overview of spending habits and account health. They can also be used for budgeting, tax preparation, and verifying transactions, ensuring that account holders stay informed about their financial status.