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 :

Correct Option: 1 only

Acquiring new technology creates long-term assets and enhances the productive capacity of an organisation, making it a capital expenditure (Statement 1 is correct). Debt financing creates a liability (borrowing), but whether expenditure funded by it is capital or revenue depends on the nature of the asset acquired, not the source of financing. Similarly, equity financing is a source of capital, not a revenue expenditure. Therefore, only statement 1 is correct.