1. In Chapter 2 of your book, it describes the accounting cycle. Phase 4 of the accounting cycle is to prepare the adjusting entries. Describe two types of adjusting entries. If those entries were not made, what would the impact be on the financial statements.

2. How does double entry book-keeping and the system of debits and credits ensure accuracy in financial reporting? Can you relate the concept of double entry bookkeeping or the accounting equation to other aspects of life or learning?