Hannover House Inc (HHSE)

[Jerry7777]

In ALL "fair"-ness --- some of you should pick up a 'basic accounting' text, and "learn" what 'cash accounting' vs. 'accrual accounting' is.

Let's say that a company reports "earnings" of 100,000.00 --- and it is on the 'cash basis' --- then its "earnings" = "cash" collected, NO 'accounts receivable', but some or ALL of THAT "cash" is also spent for telephone, wages, travel, and so forth. So the "cash balance" can still be up or down at the end of any particular "reporting period".

Now if the company is on the 'accrual basis', the 100,000.00 "earnings" may ALL be 'accounts receivable': that is, NONE, or possibly ONLY a small portion is "collected" by the end of the "reporting period". Yet, the SAME "operating and administrative costs" are still incurred (some "paid" and some yet to be "paid" at the end of the "reporting period"). So the "cash" balance may ACTUALLY go down (for this time frame).

The above is simplified --- but do NOT CON-"fuse" "income" and "cash" under either method. And "SEE" why (as minimums) financial RE-"porting" IN-"CLUE"-DES: "Balance Sheets", "Income Statements", and "Statements of Cash Flow(s)".

Possibly this will help you folks who need this under-standing.