Replies to post #11331 on Bitcoin Generation Inc. (BTGN)

[KELLYCO]

Seeing as he clearly does not know what he is doing.
INOL might as well become non reporting.
If he does not understand the proper accounting methods,principles and rules he will continue to have filings that are illegal as much thru ommission as not being of GAAP quality.Like I had mentioned before.Cash basis accounting is not acceptable for reporting companies.INOL must use accrual accounting.

http://www.dummies.com/how-to/content/understanding-accounting-methods.html

"Understanding Accounting Methods
Officially, there are two types of accounting methods, which dictate how the company's transactions are recorded in the company's financial books: cash-basis accounting and accrual accounting. The key difference between the two types is how the company records cash coming into and going out of the business. Within that simple difference lies a lot of room for error — or manipulation. In fact, many of the major corporations involved in financial scandals have gotten in trouble because they played games with the nuts and bolts of their accounting method."

"All incorporated companies must use accrual accounting according to the generally accepted accounting principles (GAAP). If you're reading a corporation's financial reports, what you see is based on accrual accounting."

"Accrual accounting: Expenses and revenue are matched, providing a company with a better idea of how much it's spending to operate each month and how much profit it's making. Expenses are recorded (or accrued) in the month incurred, even if the cash isn't paid out until the next month. Revenues are recorded in the month the project is complete or the product is shipped, even if the company hasn't yet received the cash from the customer."

Gary's books must be a comical read.Especially how he might try to show how the 4 share agreements for consultation are listed.
Because as it seems they should be listed as prepaids.
But what actual services are rendered to clear the books?

http://accountingaide.com/examples/adjusting-entries.htm

"End of Period Adjusting Entries"

"Before end-of-period financial reports are prepared, adjustments to prepaid and accrued accounts are made. This process helps provide a true indication of where the company stands financially and it matches income and expenses to the period they effect. There are several types of accounts that require adjustments:"

"Prepaid Expenses - items or services that are paid for up-front. They are classified as assets when purchased."