Question : Which of the following statements are true?
Statement 1- Capital expenditure neither reduces a liability nor creates an asset.
Statement 2- Flyovers, purchase of machines are the part of capital expenditure.
Option 1: Both are true .
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 2 is true and statement 1 is false.
Answer (1)
22nd Jan, 2024
Correct Answer:
Statement 2 is true and statement 1 is false.
Solution :
Capital expenditure reduces a liability or creates an asset.
Flyovers, purchase of machines are the part of capital expenditure.
Hence option D is correct.
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