Respond to the following questions in a Word document. Your responses must be at least 100 words long and they must be your original thoughts and words based on what you have learned. 1. Explain how an adjustment can affect both the income statement and balance sheet. Please give an example. 2. Each month Accumulated Depreciation grows while Equipment goes up. Agree or disagree? Defend your position. 3. Explain how the financial statements are prepared from the worksheet. 4. Closing slows down the recording of next years transactions. Defend or reject this statement with supporting evidence. 5. List the four steps of closing. Explain how each one contributes to the preparation of the financial statements.