- A A AEEEEE 2T * A-D-A- AaBbCI AaBbCcDc AaB T Normal 1 No Spac... Heading Font Paragraph Reactivate without interruption, please reactivate now. Question 1 - MULTIPLE CHOICE QUESTIONS (10 marks) 1. Depreciation: A Measures the decline in market value of an asset. B. Measures physical deterioration of an asset. C. Is the process of allocating to expense the cost of property, plant and equipment, D. Is a cause of obsolescence. E. All of these answers are correct. 2. The cost of land can include: A. Purchase price. B. Back property taxes. C. Costs of removing existing buildings. D Real estate commissions. E. All of these answers are correct. 3. The consistency principle: A Requires a company to use the same accounting methods period after period. B. Requires a company to use one cost flow assumption exclusively. C. Allows a company to change its cost flow assumption period after period in order to maximize net income. D. Is also called the matching principle. E Allows a company to change its cost flow assumption period after period in order to m. income taxes