Final Answer:
The Depreciation Expense shown on financial statements is not a precise amount but an estimate. It represents the systematic allocation of an asset's cost over its useful life and is subject to periodic adjustments and refinements. The statement is False.
Step-by-step explanation:
The Depreciation Expense shown on financial statements is an estimate rather than a precise amount. It represents the allocation of the cost of an asset over its useful life. Various methods, such as straight-line or declining balance, are used to estimate this allocation.
The actual value of an asset may differ from the depreciation expense due to factors like salvage value and changes in estimates. Adjustments in accounting for depreciation are made over time as the useful life or other factors affecting depreciation are reevaluated.
Therefore, while it reflects the systematic allocation of an asset's cost, the Depreciation Expense is a calculated estimate subject to periodic refinement rather than an exact value.