pyq/2022/prelims/9

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:

(A) 1 only

(B) 2 only

(C) Both 1 and 2

(D) Neither 1 nor 2