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A two-pass assembler reads the source code twice. Each reading is called a pass. In step one, the assembler does not write any code. It builds a table of symbolic names against values or addresses. In step two, the assembler generates the output code, using the table to resolve symbolic names, which allows you to enter the correct values. The advantage of a two-pass assember is that it allows forward referencing in the source code because when the assembler generates the code that you have found all the references.