Which of the following statements is correct relating to preparation of statement of cash flows?

a.

Statement of cash flows is prepared according to cash basis of accounting.

b.

Statement of cash flows must only be prepared using the indirect method.

c.

Statement of cash flows is prepared according to the accrual basis of accounting.

d.

Partnerships are not allowed to prepare a statement of cash flows.

e.

Statement of cash flows shows only the investing activities of a business.