Which Statement Is Incorrect with Respect to Proprietary Funds

Which statement is incorrect with respect to proprietary funds?

A) The required financial statements of proprietary funds include a Statement of Net Position, a Statement of Revenues, Expenses, and Changes in Fund Net Position, and a Statement of Cash Flows.
B) The net position i.e., fund equity) section of the Statement of Net Position is displayed within three categories: 1) Net Investment in Capital Assets, 2) Restricted, and 3) Unrestricted Net Position.
C) The Statement of Cash Flows must be prepared using the direct method and includes cash flows from operating activities, investing activities, capital and related financing activities, and noncapital-related financing activities.
D) Proprietary funds follow FASB rules and may follow GASB rules if not addressed by FASAB