Part II-Multiple Choices: Choose the best answer among the given alternatives and write the letter of your choice on the answer sheet provided at the end. (25 mark) 1. Which of the following most accurately reflects the concept of depreciation as used in accounting? A. The process of charging the decline in value of an economic resource to income in the period in which the benefit occurred. B. The process of allocating the cost of tangible assets to expense in a systematic and rational manner to those periods expected to benefit from the use of the asset. C. A method of allocating asset cost to an expense account in a manner which closely matches the physical deterioration of the tangible asset involved. D. An accounting concept that allocates the portion of an asset used up during year to the contra asset account for the purpose of properly recording the fair market value of tangible assets. the E. None of the above 2. The inventory system that uses accounting records that continuously discloses the amount of inventory is: A. Periodic B. Perpetual C. Physical D. Retai E. None of the above 3. Actual interest costs' capitalizing considers which one of the following items? A. Qualifying assets B. Capitalization period C. Amount to capitalize D. All of the above E. None of the above 4. Which of the following payments is Not included in the cost of land? A. Removal of old building B. Back property taxes paid C. Legal fees D. Cost of fencing and lighting with limited economic life of the above On December 31