With reference to the expenditure made by an organisation or a company, which of the following statements is/are correct? 1. Acquiring new technology is capital

Question

With reference to the expenditure made by an organisation or a company, which of the following statements is/are correct?
1. Acquiring new technology is capital expenditure.
2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure.
Select the correct answer using the code given below:

Accepted Answer

(A) 1 only

Answer

(B) 2 only

Answer

(C) Both 1 and 2

Answer

(D) Neither 1 nor 2