Correct answer: (a) 1 only
Explanation
- A
1 only
1 only. Buying new technology is capital expenditure. Debt vs equity finance is a funding choice, not capex vs revenue.
- B
2 only
2 only. Financing route does not classify the spend.
- C
Both 1 and 2
Both. Statement 2 fails.
- D
Neither 1 nor 2
Neither. Statement 1 is standard accounting.
Summary. Official key is (a) 1 only. Acquiring technology that yields benefits over years is capital expenditure. How you fund it — debt or equity — is not itself capex or revenue expenditure.
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