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Byju's Answer
Standard XII
Accountancy
Revenue Items vs Capital Items
Does capital ...
Question

Does capital expenditure affect profit?


A

Yes, it will increase the profit

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B

Yes, it will decrease the profit

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C

No, it will have no effect.

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D

None of these

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Solution

The correct option is C

No, it will have no effect.


No, the capital expenditure does not have any effect on profit.


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