I know when I'm beaten

Mad Hatter:

[looking at his watch]
What day of the month is it? Alice:
The fourth. Mad Hatter:
Aha! Two days wrong! [glares at the March Hare] Mad Hatter:
I told you not to use butter! The March Hare:
It was the best butter. The Dormouse:
Danish, mmm. Mad Hatter:
Some crumbs must have got into it as well. I said, don't put butter in the works with a bread knife! The March Hare:
I couldn't put it in with a fork, could I? Here, let me see... Mad Hatter:
I don't want to give it to you... but I will! [the Hare takes the watch and examines it; first by banging it on the table, and then by dipping it into his teacup] The March Hare:
I don't understand it. It was the best butter. The Dormouse:
Danish, mmm. [the Hare tosses the watch over to Alice, who picks it up and studies it] Alice:
It's a funny watch. It tells the day of the month, but not the time. Mad Hatter:
Why should it? Does your watch tell you what year it is? Alice:
No, because it stays a year for so long. Mad Hatter:
Well, then, I rest my case! The March Hare:
Where? Mad Hatter:
[points to a pile of suitcases]
There. [breaks into laughter] The March Hare:
[dully]
I know when I'm beaten