Depreciation:

A. Is applied to land.

B. Is the process of allocating the cost of a plant asset to expense.

C. Is an outflow of cash from the use of a plant asset.

D. Measures the decline in market value of an asset.

E. Measures physical deterioration of an asset.

B. Is the process of allocating the cost of a plant asset to expense.

Explanation:

Depreciation is an expense indicating a reduction in the value of the capital assets due to tear and wear, obsolescence, consumption, time span, etc. It's listed on the income statement debit side. It is a non-cash item that has no effect on the cash balance.

Moreover, it is a process in which there is an allocation of the cost of fixed assets to the expense account over their estimated useful life