To reconcile an account means to account for all the changes occurring in an account during the applicable year. This means: The statement of cash flows must identify all the increases , or , to an asset account. The statement of cash flows must identify all the decreases , or , to an asset account. The statement of cash flows must identify all the increases , or , to a liability or equity account. The statement of cash flows must identify all the decreases , or , to a liability or equity account. Both the and to an account, in summation and netted against one another, account for the total change in an account.