Question 8 of 57Indian Economy

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 expenditures. 2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditures. Select the correct answer using the code given below.

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2

Correct Answer

The correct answer is hidden

Explanation

23 words hidden ... because debt financing and equity financing are methods of financing, not expenditure categories in the sense stated. ... 24 words hidden