A question about preparing a cash basis balance sheet.
Is inventory shown on cash basis balance sheet?
"Inventory. Not used for the cash basis or the modified cash basis, since these purchases are charged directly to expense; however, many cash basis companies prefer to include it. Used under the accrual basis."
https://www.accountingtools.com/article ... sheet.html
What is said there seems to be very inconclusive. So is there a guideline to determine if the inventory of a business should or should not be reported on its cash basis balance sheet?