UPSC 2022EconomyModerate

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
Public Finance / Corporate FinanceTypes of ExpenditureCapital expenditurerevenue expenditurenew technologydebt financingequity financing

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