How does the recognition of depletion expense affect the elements of the financial statements?
A. Increases assets, equity, and cash flow from operating activities.
B. Decreases assets and stockholders' equity and decreases cash flow from investing expenses under the direct approach.
C. Decreases cash flow from operating activities, and does not affect the amount of total assets.
D. Decreases assets and equity, and does not affect cash flow.
Answer: D
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