Capital expenditures are major investments made by a company to expand its business. Examples include the acquisition of long-term assets, such as facilities and manufacturing equipment. Typically, they are one-time costs.A long-term asset generates income for years, so its full cost cannot be deducted in the year it’s incurred. Instead, companies recover the cost through year-by-year depreciation of the asset’s useful life. Revenue expenses cover a business’ ongoing operational costs. They’re recurring and short-term. Revenue expenses can be fully tax-deducted in the year they’re incurred. They include repair charges, renewals, and even repainting. They’re the maintenance costs paid by a business to keep its long-term assets functioning properly. Capital expenditures appear as an asset on a company’s balance sheet. Revenue expenses are listed with liabilities.