Easy

Cash transactions

• Cash sales & purchases
• Paying bills in cash
• Owner cash investments

Medium

Accounts payable & receivable

• Credit sales & purchases
• Collecting from customers
• Paying suppliers

Hard

Accruals & prepayments

• Accrued expenses
• Prepaid items
• Deferred revenue

Expert

Depreciation & adjusting entries

• Straight-line depreciation
• Allowance for bad debts
• Complex year-end entries