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Economics › Budget, Fiscal Policy

Economics › Budget, Fiscal Policy

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 :

Options

(a)

1 only

(b)

Both 1 and 2

(c)

2 only

(d)

Neither 1 nor 2

Answer

(A)