Final answer:
The adjustments made during a bank reconciliation can affect the statement of cash flows by accounting for outstanding checks and deposits in transit.
Step-by-step explanation:
The adjustments that must be recorded in a company's financial records when performing a bank reconciliation can affect the statement of cash flows.
One important adjustment is the recording of outstanding checks. These are checks that have been issued but have not yet cleared the bank. When reconciling the bank statement, the company needs to subtract the outstanding checks from the bank balance to arrive at the correct cash balance.
Similarly, the company needs to record deposits in transit. These are cash receipts that have been made by the company but have not yet been recorded by the bank. When reconciling the bank statement, the company needs to add the deposits in transit to the bank balance to arrive at the correct cash balance.