Option C, The incomplete record of disposal of assets understates the balance of assets.
Explanation:
An asset is a resource of the enterprise in financial accounting. Anything which is tangible or intangible which can be owned by a firm to generate good economic benefit is an asset.
A non-physical asset, such as a trademark, brand or copyright, is an intangible asset.
Corporations can create or purchase immaterial assets.
An intangible property, such as a legal agreement, can be deemed undetermined (a brand name) or definite.
An intangible property generated by an entity does not exist on the financial statements (Balance sheets) and does not have a book value recorded.