Final answer:
The indirect method of preparing the statement of cash flows is more commonly used in practice than the direct method and does not produce different amounts for cash flows from investing or financing activities. The Accounting Standards Board does not prefer the indirect method over the direct method; both are acceptable, though the direct method is preferred.
Step-by-step explanation:
The indirect method of preparing the statement of cash flows: a) Is more commonly used in practice than the direct method. This is because it begins with net income as reported on the income statement and adjusts for non-cash transactions and changes in working capital to arrive at cash flow from operating activities.
While the direct method provides more detailed information by listing major classes of gross cash receipts and payments, the indirect method is more widely used due to its simplicity and because it reconciles net income with cash flow from operations.
When comparing the direct and indirect method, b) Is preferred by the Accounting Standards Board over the direct method is not accurate. In fact, both U.S. GAAP and IFRS express a preference for the direct method while still accepting the indirect method.
As for statements c) and d), neither method produces a different amount for cash flows from investing or financing activities. The presentation of operating activities may differ, but the overall cash flow is the same regardless of the method utilized.