Final answer:
Revenue expenditures are costs expected to provide benefits within a period of less than one year, like utilities and rent, while capital expenditures are for long-term assets providing benefits over several years.
Step-by-step explanation:
Expenditures for which the benefits are expected to be received over a period less than one year are typically categorized as revenue expenditures. These are the day-to-day expenses necessary to keep a business running, such as utilities, rent, and office supplies, and they are matched with revenue of the period.
In contrast, capital expenditures are costs incurred to acquire or improve a long-term asset such as equipment or buildings, and the benefits from these assets are expected to extend over several years. Expenses related to assets or the acquisition of assets are recorded on the balance sheet and may include items that fall under categories like nonresidential structures or changes in inventories as mentioned in investment expenditure definitions.
Expenditures for which the benefits are expected to be received over a period less than one year are revenue expenditures. Revenue expenditures are expenses incurred by a business that are necessary for its day-to-day operations and are expected to be consumed within a year. Examples of revenue expenditures include salaries, rent, utilities, and office supplies.