$2-38$ In countries such as the U$.$S$.,$ there is great demand for public disclosure of accounting information. What is the reason for this?

Corporate management isn't trustworthy.

Businesses rely heavily on financing through issuance of stock to the public.

The American populace is better able to read financial statements than people in other countries.

U$.$S$.$ government officials are generally members of corporate boards of directors and can get all the information they require.