How is a checkbook typically balanced?

A checkbook is typically balanced by comparing bank statements to withdrawal records because this process allows an individual to verify the accuracy of their financial transactions. This balancing act involves reviewing the bank's records and reconciling them with the individual's own records of deposits and withdrawals. By ensuring that the transactions align with the bank statement, one can identify discrepancies, such as missed transactions, unauthorized charges, or errors in calculation.

This method is essential in maintaining accurate financial records and managing funds effectively. It provides a clear picture of the actual money available and helps prevent overdrafts or other banking issues. By engaging in this practice, individuals can ensure they have a reliable handle on their financial situation.