Finance Glossary
Accounts Payable (AP)
A company's short-term obligations to pay for goods and services it has received but has not yet paid for. It reflects the amount of money tht a Hypha owes to its suppliers, vendors, and creditors.
Accounts Receivable (AR)
The amount of money owed to a business by its customers or clients for goods sold or services provided on credit.
Togther with recoverable cash, this is what is owed to Hypha
Assets
All the resources and items of value that the company owns. These include:
- Cash
- Cryptocurrency
- Accounts receivable and recoverable money
- Prepaid expenses
- Capital assets
Capital Assets
- Also known as "fixed assets" or "long-term assets", they are expected to provide benefits over an extended period of time, typically exceeding one year.
- They are not intended for resale in the normal course of business.
- They depreciate over time.
- Example: our servers at the data centre.
Cash
Money we hold in the bank.
Cryptocurrency
Cryptocurrency tokens we hold in our wallets.
Deferred income
- Also known as "deferred revenue" or "unearned revenue", this is income that a company has received but has not yet earned.
- Considered a liability on the balance sheet until the company fulfills its obligation by delivering the products or services.
Direct Costs
Also known as variable as "variable costs" or "prime costs", these are expenses that can be specifically and directly attributed to the production of a particular product, the delivery of a particular service, or a specific project.
Expenditures
Money that a company spends or pays out in order to cover various costs, expenses, or investments. Expenditures can encompass a wide range of financial transactions and can be categorized into different types based on their purpose.
Gross Profit
The profit a company earns after deducting the cost of goods sold (COGS) from its total revenue. It's a fundamental measure of a company's profitability, focusing specifically on the profitability of the company's core operations.
Liabilities
Debts, obligations, or financial responsibilities that Hypha owes to another party. They represent claims against a company's assets and are typically categorized on a company's balance sheet.
What Hypha owes
Liquidity
How much money we have access to right now to pay expenses. This includes access to money we hold, but may not belong to us (e.g. credit cards).
Net Assets
The amount of money Hypha holds in its Members, Reserve, and Treasury funds.
Prepaid Expenses
Something that has been paid in advance: we either get the goods, services, or our money back.
Recoverable Cash
Money we paid that we will get back (e.g., HST).
Together with AR, this is what is owed to Hypha
Revenue
The total income generated by a Hypha from its primary activities, such as the sale of goods, provision of services, or other sources of income.
How much Hypha billed
Statement of Financial Position
- Also known as a "balance sheet", it's the snapshot of a company's financial positon at a specific point in time.
- It helps stakeholders assess the company's financial health and its ability to meet its financial obligations
Wages Payable
How much the company owes to its employees for work they have performed but has not yet been paid.