Week 4 Discussion 1 Good Evening Everyone, The four basic nancial statements are; the balance sheet, the statement of revenue and expense, the statement of fund balance or net worth, and the statement of cash ows (Baker, Baker, & Dworkin. 2017). Each of these statements will help in reports and balancing the statements, it is important for the manager to understand the concept of these, but not have to know all the ends and outs of being an accountant. In this week's discussion I will be discussing the importance of the balance sheet and what its main functions are. A balance sheet is what helps keep the company organized with what they own, owe, and an overall worth of the organization, the sheet is called a balance sheet, because essentially that is what it does, it keeps the total/balance of everything for the company, which also includes its liabilities and net worth (Baker, Baker, & Dworkin. 2017). A balance sheet will allow you to compare current balances within the company to past years balances and you can see what the differences are and it can help show where adjustments need to be mad to continue being successful or to become successful. Financial statements help keep a department honest and aware of what they are capable of obtaining, while maintaining a good standing on all of their liabilities, it helps hold them accountable for their responsibilities all while being a guide to success. Reference Baker, J.J., Baker, R. W., Dworkin. N. R. (2017). Health care finance: Basic Tools for nonfinancial managers (5th ed.). Retrieved from https:llcontent.ashford.eduibooksiBakerBBS.18.1lsectionslch11_sect1_1