Which of the following statements is true regarding depreciation? It doesn't really affect corporate performance since it is a non-cash expense Depreciation allocates the cost of a long-lived asset to the accounting periods over which it is used. Depreciation is an asset valuation concept; that allocates cost to reflect the actual change in the value of the asset. Depreciation expense will typically will be shown on the statement of financial position. The Accumulated Depreciation account has a normal debit balance