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Owen Lovejoy's Provisioning hypothesis proposes that:
Cash Equivalents
Short-term, highly liquid investments that are readily convertible to known amounts of cash and so close to their maturity that they present insignificant risk of changes in value.
Investing Activities
Transactions related to the acquisition or disposal of long-term assets and other investments not classified as cash equivalents.
Financing Activity
Refers to transactions and events that affect long-term liabilities and equity of a company, including securing loans and issuing shares.
Investing Activity
Financial actions related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.
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