Which statement is true?
A)Management is always reluctant to write down asset values.
B)Intangible assets do not require effective controls because they have low inherent risk.
C)Complex ownership structures may create challenges in the recording of assets.
D)The incomplete recording of asset disposals understates the asset balance.

Question

Quizplus · Accepted Answer

Complex ownership structures can create challenges in identifying and recording assets, especially if ownership is unclear or disputed between multiple parties.

Answer: D 
 Incomplete recording of asset disposals leads to the overstatement of asset balances, as disposed assets are still included in the balance sheet.

Which Statement Is True