Depreciation Expense is classified as which type of account?

Depreciation Expense is classified as an account that appears on the Income Statement. This classification is due to the fact that depreciation represents a systematic allocation of the cost of a tangible asset over its useful life, reflecting the expense incurred in generating revenue. Since it is an expense, it directly impacts the net income for a given accounting period, making it a crucial element of the Income Statement.

In the context of financial reporting, understanding where depreciation fits is key for analyzing a company's profitability and operational efficiency. It does not belong on the Balance Sheet, which focuses on assets, liabilities, and equity at a particular point in time. Similarly, it is not classified as an equity account or a revenue account, as those pertain to the owner’s equity and income generation, respectively. The correct classification reinforces the relationship between expenses and revenue in determining overall financial performance.