Choice "B" is correct. Capital financing activities are reported separately from non-capital financing activities in a governmental entity's statement of cash flows. Capital financing activities include acquiring and disposing of capital assets and any related debt. Non-capital financing activities include borrowing money for other than capital expenditures, such as tax anticipation notes.Choice "a" is incorrect. A governmental entity's combined statement of cash flows is not of the same format as that of a business enterprise. It has four classifications: operating, non-capital financing, capital and related financing, and investing activities. Reconciliations from the Statement of Revenues, Expenses and Changes in Net Position to the cash flow from operations on the Statement of Cash Flows is based on operating income, not the bottom line (the change in net position).Choice "d" is incorrect. Cash flows from operating activities must be reported using the direct method. Choice "c" is incorrect. The cash flow statement of a governmental entity is only prepared for proprietary funds.