1. How does net cash flow differ from accounting profit? a. Shows the change inequity between the balance sheet dates b. Some revenues and expenses reflected in the accounting profits may not have received or paid out in cash during the year C. Accounting profits do not include short-term investments d. Accounting profits do not include long-term 2. How does EBIT differ from Operating Profit? 3. If a firm is operating at full capacity, the firm is: a. Generating the maximum level of sales given the current level of inventory. b. Operating 24 hours a day. c. Operating at the highest possible debt-equity ratio. d. Generating the maximum amount of sales given the available level of cash. e. Producing the maximum level of sales given the current level of fixed assets