What are financial statements?

Financial Statements: They are the statements that express the value of the financial institution and its financial position in terms of its assets, profits, obligations of the company and liquidity.
Owners, suppliers, lenders, investors, shareholders, the tax authority and others are interested in it for various purposes, such as determining the size of the investment and the quality and size of the loan.
The financial statements are divided into:
Income Statement
and it is :
Revenues
expenses
Financial Statement
The statement of financial position consists of:
Assets, which are the rights and property of institutions, and are divided into:
Current assets: They are defined as monetary and other assets that can be converted into cash such as stocks and bonds, merchandise inventory, notes receivable, accrued income and prepaid expenses.
Fixed assets: which are owned by the facility with the intention of using them in the performance of its activity, such as land, buildings, cars, computers and others
Intangible assets: represent what the enterprise paid to obtain a benefit that does not have a tangible physical entity, such as: the goodwill of the company or factory, trademarks.
Liabilities: They are the obligations of the firm towards others and are divided into:
Current Liabilities: These are the obligations owed by the company towards others, such as dues to suppliers and payment papers
Creditors: of all kinds, and the taxes owed to the tax authorities
Accrued expenses: such as the end-of-month salaries for employees, rents of the institution that have not yet been paid
Long-term liabilities: These are obligations that the facility must pay after a period, such as bonds, long-term loans, mortgage loans.
Equity (net assets): It is the owners’ investments in the facility and it is represented in the capital in addition to any accumulated profits with the facility.
Objectives of the main financial statements
Paying attention to all categories associated with the financial statements; Especially investors and current and potential creditors; These categories are considered among the most important observers of the financial statements, in addition to the accountants and management within the institution.
Follow-up information that helps in estimating the size and degree of risk affecting the future cash flows generated by the company.
Providing information on apparent changes in total resources resulting from profit-oriented activities; This is in order to know the expected returns and determine the extent of the facility's ability to pay its debts to suppliers and creditors, and to show its ability to pay its taxes.
Use measures of change in liabilities and resources associated with the measurement of the entity's income; By relying on the income statement, this contributes to providing the best way to predict future cash flows compared to actual cash flows.
Where the Afaky accounting program provides a quick and simple mechanism for obtaining reports on the financial statements, and this is done through a set of settings that the financial manager of the institution determines to obtain in the end the required expected results