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:

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UPSC Question: With reference to the expenditure made by an organisation or...

Economy

2022

Basic Economic Terms

Fiscal Policy

With reference to the expenditure made by an organisation or a company, which of the following statements is/are correct?

Acquiring new technology is capital expenditure.
Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure. Select the correct answer using the code given below:

B.2 only

C.Both 1 and 2

A.1 only

D.Neither 1 nor 2