With reference to the expenditure made by an organization 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:
Question:
With reference to the expenditure made by an organization 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:
With reference to the expenditure made by an organization 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:
Options
Answer: 1 only
Explanation:
Spending on acquiring new technology is a capital expenditure. Financing (debt or equity) refers to raising funds, not classifying expenditures.
Explanation:
Spending on acquiring new technology is a capital expenditure. Financing (debt or equity) refers to raising funds, not classifying expenditures.
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