When reporting a cash basis corp (1120 or 1120-s), is the balance sheet reported on cash basis or accural?

[IRonMaN]

Cash

[sjrcpa]

Your choice. If you use accrual then fill out the M-1 for all the accrual to cash differences.

I used to use cash, but then clients started having to file the M-3 so now I mostly do accrual presentation.

[MBooks-Tax]

Thank you very much!

[qbteachmt]

Do they have inventory? That is when you will see not purely cash basis, but mixed, or "modified."