Depreciation is the process of allocating the costs of the assets over their expected useful life. True False

The statement is True.

Depreciation refers to the accounting method used to allocate the cost of a tangible asset over its useful life. This allocation reflects the reduction in the asset's value as it is used over time, which is a fundamental principle in accounting. By systematically expensing a portion of the asset's cost each year, businesses can match the depreciation expense against the revenue generated from the asset, adhering to the matching principle of accounting. This process not only helps in accurately reflecting the financial status of a company but also aids in budgeting and tax calculations, allowing businesses to understand the true cost of their assets as they age and become less valuable.