The correct answer is: A. Capital expenditure.
Capital expenditure is an expenditure that is incurred on the purchase of fixed assets, such as land, buildings, and equipment. These assets are used in the business for more than one year and are not intended for resale.
Revenue expenditure is an expenditure that is incurred on the day-to-day running of the business. These expenses are not considered to be assets and are not expected to last for more than one year.
Deferred revenue expenditure is an expenditure that is incurred on the purchase of assets that will be used in the business for more than one year, but which are not yet ready for use. These expenses are treated as assets and are gradually written off over the period of their use.
In the case of fees paid to a lawyer for drawing a purchase deed of land, this is a capital expenditure because it is an expenditure that is incurred on the purchase of a fixed asset, namely the land. The land is a long-term asset that will be used in the business for more than one year.
Revenue expenditure would be an expenditure that is incurred on the day-to-day running of the business, such as the cost of goods sold or the cost of salaries. Deferred revenue expenditure would be an expenditure that is incurred on the purchase of an asset that will be used in the business for more than one year, but which is not yet ready for use.