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Employees can also be potential investors and they may need the financial statements in order to decide whether or not it would be prudent to invest in the company. Also if they need to negotiate wages, they can use the financial statements to prove that the company can afford to increase their wages. It also helps employees to see the stability of the company (for example if the company is going to sink, they will be able to pre-empt the fact that they might not be around for much longer and be able to start looking for jobs elsewhere)

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When does an accounting prepare the financial statement?

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