Revenue expenditures: These are the ongoing operating expenses, which are short-term expenses used to run the daily business operations. Revenue expenditures are short-term expenses used in the current period or typically within one year. Revenue expenditures include the expenses required to meet the ongoing operational costs of running a business, and thus are essentially the same as operating expenses. For example, salaries and wages of employees.
Capital expenditures: These are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period. Capital expenditures are often used for buying fixed assets, which are physical assets such as equipment. For example, land or building.
