Define and compare capital expenditures and revenue expenditures.

Capital expenditures include the original cost of an asset as well as payments that improve on or enlarge existing assets. Capital expenditures may be put down into three categories: additions or enlargements; extraordinary repairs; and betterments.
Revenue expenditures are payments made for ordinary maintenance of an asset or unnecessary or unreasonable situations. These expenditures occur on a regular basis and are recorded as expenses. Examples would include changing tires on a truck or repainting a van.