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

D. Both capital expenditure and revenue expenditure affectthe profitability of a concern directly

Answer: Option C