MC Qu. 12-143 Which of the following statements about... Which of the following statements about preparation of the statement of cash flows is correct? Multiple Choice C) Although GAAP allows either method for the preparation of the operating activities section of the statement of cash flows, the indirect method must be used to prepare the investing activities section of the statement of cash flows. GAAP allows the direct method only. GAAP allows either the indirect or direct method. GAAP allows the indirect method only