Step 1: Define an appellate court.
An appellate court is a higher court that has the jurisdiction to review and revise the decisions of lower (subordinate) courts on appeal filed by aggrieved parties.
Step 2: Examine the scope.
An appellate court generally does not record fresh evidence; it reviews the existing record. Importantly, it hears appeals in both civil and criminal matters, not restricted to only one.
Step 3: Select the accurate statement.
Option 2 correctly states that an appellate court hears appeals and reviews decisions of subordinate courts without limiting it to only civil or only criminal cases.
\[ \boxed{\text{It hears appeals and reviews decisions of subordinate courts}} \]