Which of the following statements is/are incorrect: 1. Internally-generated goodwill does not feature on the SOFP, but acquired goodwill is shown as an asset on the SOFP. II. Writing down the value of inventory on the SOFP and recognising increased cost of sales in the income Statement before actually selling the inventory is an illustration of the prudence convention. III. Depreciation represents the loss in market value of an asset over its useful life. IV. The total assets on the SOFP most often understate the value of the business, due to important intangible assets with subjective valuations missing from the SOFP and the assets shown on the SOFP appearing in most cases at their historical cost, instead of their fair values. V. A rules-based accounting regulatory system, like US GAAP, provides more flexibility and enables more judgement for preparers of financial statements than a principles-based system, like IFRS. Select one: O a. (1), (11), (III) and (IV) O b. (IV) and (V) O c. (III) and (V) O d. (11), (IV) and (V) e. (II) and (III)