How does the expense of equipment on the B/S show up on the P & L statement?

Question

Our accounting is on a cash basis. Isn't it deceiving that the actual cost of the equipment is not on the P & L?

Answer 1

This is what deprecation does.  It spreads the cost of the equipment over several years.

Answer 2

That's why accountants refer to the financial STATEMENTS taken as a whole. That includes the P&L, the balance sheet, and the cash flow statement. As a group of integrated statements, they can provide valuable information for managing your business.

What kind of accounting system do you use? Do you use QuickBooks? It can give you all 3 statements for any period you need. So can most others. I am not a shill for QB, although the program is very good. I dislike dealing with Intut, though.