 In this discussion, we will discuss the discussion question of describe revenue expenditures and capital expenditures. When considering the terms revenue expenditures and capital expenditures, we're thinking about them in terms of property, plant, and equipment. So what's the difference between a revenue expenditure and a capital expenditure when related to property, plant, and equipment? We're typically thinking about things that will either extend the useful life of the property, plant, and equipment or things that will not, meaning things that are typically going to be normal repairs. And that means that if something is a normal repair, we will write it off and expense it as an expense, increasing the expense, decreasing net income at the point in time we have the normal repair as opposed to if we have a capital expenditure, which is going to be something that extends the useful life of the equipment, then we need to put it on the books as an asset, capitalizing it, and then depreciating it over the useful life of that capital expenditure. So when thinking of something like property, plants, and equipment or something like equipment, anything that would be a normal maintenance job such as like an oil change or something like that, normal type of maintenance, we would then write that off and the journal entry would be something like a debit to an expense repairs and maintenance expense possibly, and a credit to something like cash or whatever form of payment we had, increasing the expense, decreasing net income. If on the other hand we did something that would extend the useful life. So for example, if we replace the full engine of the car, then that seems more than just a normal type of repair and therefore probably extends the life of the car and or changes the objective of the vehicle. And therefore it would probably be a capital expenditure, something we'd want to put on the books as an asset, the recording of it being a debit to property plants and equipment, an asset account rather than an expense account, credit to cash or whatever form of payment. And then of course as with property plants and equipment we would then have to depreciate and find some way to depreciate that capital improvement over the life of the asset.