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:

1. Acquiring new technology is capital expenditure. Capital expenditure creates or upgrades a long-term asset that gives benefits over multiple years; purchase/acquisition of technology or related rights is generally treated as capital expenditure. Verdict: Correct.

2. Debt financing is considered capital expenditure, while equity financing is considered revenue expenditure. Debt and equity financing are sources of finance, not expenditure heads; they are not classified as capital vs revenue expenditure in this way. Verdict: Incorrect.

Hence, only statement 1 is correct.