All of the items included under Pet Smart’s current assets are indeed listed in the proper order. The order of current assets is as follows; Cash, Trading Assets, Cash Equivalents. Short-Term Investments, Accounts Receivable, Loan Receivable, Inventory, Deferred Taxes, Pre-Paid Taxes, and other current assets according to, (2000), Phil Weiss. It is very important to know and realize what your current assets look like. What happens if you do not make enough for that month, how would you pay for your expenses? You would use your cash on hand to take care of this problem. That is why it is always important and wise to save your money because you never know when you just may need it. The current   assets on Pet Smart’s balance sheet are as follows; Cash, Petty Cash, Temporary Investments, Accounts Receivable, Inventory, Supplies, Pre-Paid Insurance, Land, Land Improvements, Buildings, Equipment, Goodwill, and Bond Issue Cost.
According to, “to be classified as a current asset, the amounts must be cash or be expected to turn into cash, be used up, or expire within one year of the balance sheet date.” Cash equivalents are probably more on the side of a liquid when it comes to assets on the balance sheet. According to, “cash equivalents are assets that are readily convertible into cash.” For example, CD’s or Money Market accounts are the prime example of accounts that are readily convertible into cash. In other words, there is no reserve or hold on them. However, you could incur a fee from the financial institution for taking the money out before its maturity date.
Pet Smart’s total current liabilities at the end of its most recent annual reporting period were a total of $754,892.00 on February.3, 2013. Pet Smart’s total current liabilities at the end of the previous annual reporting period were a total of $681,306.00. Considering all of the information that I have gathered thus far, this could be considered...