Which of the following statements is false?

(a) Operating activities include delivering or producing goods for sale and providing services and the cash effects of transactions and other events that enter into the determination of income.

(b) The statement of cash flows is called so because it shows changes over time rather than the absolute dollar amounts of the accounts at a point in time.

(c) Depreciation and amortization are added back to net income because they reflect the recognition of a noncash expense.

(d) Normally, the statement of cash flows is prepared only on the direct method basis.