Final answer:
Capital expenditures and revenue expenditures are two different types of expenses. Capital expenditures are costs associated with acquiring or improving long-term assets, while revenue expenditures are expenses for maintaining or repairing existing assets.
Step-by-step explanation:
Capital expenditures are those that are included in the cost of a plant asset, while revenue expenditures are expensed immediately. Capital expenditures refer to the costs incurred in acquiring or improving long-term assets, such as buildings, machinery, or vehicles, which are expected to provide future benefits over a longer period. Revenue expenditures, on the other hand, are expenses incurred in maintaining or repairing existing assets, such as repairs and maintenance expenses. For example, if a company builds a new factory, the cost of constructing the factory would be considered a capital expenditure, while the cost of regular maintenance and repairs would be a revenue expenditure.