Part #1: First define briefly the following: 1. What is accounting and what are the six (6) steps of the accounting cycle? 2. Differences between Financial and Managerial Accounting? 3. What is the accounting basic equation? 4. Explain each of the main the Financial Statements. 5. As a potential investor in a firm or perhaps the buyer of a particular business, would it be advisable to evaluate the company's financial statements? Why or why not? What key information would you seek from a firm's financial statements?