How does the recognition of depletion expense affect the elements of the financial statements?

$1\mathrm{.}5$

points

$00$:$54$:$00$

Multiple Choice

Decreases cash flow from operating activities and does not affect the amount of total assets.

Decreases assets and stockholders' equity and does not affect cash flow.

Decreases assets and stockholders' equity and decreases cash flow from investing expenses under the direct approach.

Increases assets, stockholders' equity, and cash flow from operating activities.