Which of the following statements best explains why accrual basis net income does not equal the cash flows from operating activities? GAAP does not impact how transactions are recorded under the accrual basis. Some cash flows, such as depreciation, are reported as operating cash flows but not as expenses under the accrual basis. Accrual basis revenue and expense recognition principles are not based on receiving and paying cash. O Under the accrual basis, the accounting equation is out of balance. Under the accrual basis of accounting, dividends are reported as an expense.