Capital expenditure (Capex) is an investment in assets that will provide long-term benefits to an organization, typically for more than one accounting period. Revenue expenditure provides benefits only in the current period.
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:
Asked in UPSC IAS 2022 · Topic: National Income & Gross Domestic Product (Gross Domestic Product (GDP): Concepts and Measures)
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