 Hello. In this lecture we will define cash equivalence. According to fundamental accounting principles, while 22nd edition, the definition of cash equivalence is short-term investment assets that are readily convertible to a known cash amount or sufficiently close to their maturity date, usually within 90 days, so that market value is not sensitive to interest rate changes. When we think about cash, we're typically thinking about the checking account, the savings account. When we think about cash as well as cash in terms of dollars and coins, when we think about cash equivalence, we are including in the definition of cash and cash equivalence things that are very liquid, highly liquid, very close to cash. Those could include investments that are readily available, investments that are very close to maturity, investments where the interest will not have a significant impact because of the closeness to maturity. So when we're looking at this, cash would include things like of course cash, hard cash, coins, dollars, and the bank checking account, saving accounts. Those typically will be included in cash when we look at the line item of cash on the balance sheet in most financial statements. However, we're usually seeing cash and cash equivalence. Cash equivalence could be those highly liquid things included in that line item, such as money market funds, could have market securities, again, ones that are going to be very available and close to maturity. We could have short-term government bonds, again, government bonds that are very close to maturity, government bonds where the interest rate will not have a significant impact because of the closeness to maturity.