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 :

Statement 1 is correct because acquiring new technology is a capital expenditure as it creates a long-term asset and enhances the future productive capacity of the organization. Statement 2 is incorrect because both debt and equity financing are methods of raising funds (capital receipts) rather than types of expenditure. The core concept tested is the classification of financial transactions based on whether they create assets/reduce liabilities (Capital) or relate to day-to-day operations (Revenue).