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:

1. A

   1 only

   1 only. Buying new technology is capital expenditure. Debt vs equity finance is a funding choice, not capex vs revenue.

2. B

   2 only

   2 only. Financing route does not classify the spend.

3. C

   Both 1 and 2

   Both. Statement 2 fails.

4. 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.