Which type of budget primarily helps to plan for long-term financial goals?

The capital budget is primarily focused on planning for long-term financial goals, as it involves allocating funds for significant investments in assets that will benefit the organization over an extended period. These assets could include property, equipment, and infrastructure, which are essential for the growth and sustainability of a business. By analyzing projected costs and returns, the capital budget helps determine which projects to pursue based on their potential impact on future financial performance.

In contrast, the operating budget typically relates to the day-to-day expenses and revenues, ensuring that operations can continue efficiently within a given period. The cash budget monitors cash flow to ensure that the business can meet its short-term obligations, while the expense budget focuses specifically on managing operational costs. These budgets serve important functions but do not concentrate on long-term financial strategy and investment as the capital budget does.