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

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

Answer: Option C