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Commerce · Q1390

Accounting

Graduate and Post Graduate · Commerce · question 1390

Q1390

Which one of the following statement is true?

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

Answer: Option C

Solution

Answer: Option C
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