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. Statement 1: Capital expenditure refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, technology, or equipment. Acquiring new technology typically involves purchasing long-term assets that provide benefits over multiple periods, hence it is classified as capital expenditure. This statement is correct. 2. Statement 2: Debt financing and equity financing are methods of raising funds for the company, appearing on the liability and equity side of the balance sheet, not as expenditure on the income statement. The costs associated with these (like interest payments on debt) are expenses, but the financing itself is not categorized as capital or revenue expenditure. Therefore, this statement is incorrect. 3. Since only statement 1 is correct, the correct option is (A).