The Degree of Accounting Disclosure Required Tends to Be Greater

Multiple Choice

The degree of accounting disclosure required tends to be greater in countries with well-developed capital markets. Why is this?

A) Countries with well-developed capital markets also have well developed legal systems.
B) The disclosure requirements were designed to prevent fraud.
C) These markets tend to have more sophisticated investors who demand more information.
D) Companies in these countries are required to comply with GAAP.