Question on Resources

In the following document: https://developer.garmin.com/connect-iq/core-topics/resources/ I don't understand how the compiler finds all the resources I'd like to include in my program. 

Does it just recursively search all *.xml files in the "resources" subdirectory and include everything it finds? 

Do I need to reference my XML files in the manifest.xml and/or the monkey.jungle?

The documentation just says "Its input is an XML file:" but doesn't say how they are referenced and pulled into the Rez.

Thanks!