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Commerce · Q842

Accounting

Graduate and Post Graduate · Commerce · question 842

Q842

Which of the followingstatements istrue?

A.
Capital expenditure does not affectthe profitability of a concern, but revenue expenditure does affect the profitability of a concern
B.
Capital expenditure affects the profitability of a concern directly,but revenueexpenditure does not affectdirectly
C.
Capital expenditure affects the profitability of a concern indirectly, but revenue expenditure affects directly
Answer
D.
Both capital expenditure and revenue expenditure affectthe profitability of a concern directly

Answer: Option C

Solution

Answer: Option C
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