Yes, other than nuclear reactors or stars or some other situations, matter is conserved. It is not created or destroyed. There is a finite number of atoms in the Earth. It is an insanely mind bogglingly large number of atoms, but it is limited. And yes, decomposition recycles atoms into new material. We eat plants and burn the carbohydrates and excrete CO2 and H2O. The take in the CO2 and the H2O and use sunlight to turn it back into the carbohydrates we burn. Similar cycles exist for various other substances like the nitrogen cycle.
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