Which of the following best describes a Capital Budget?

A capital budget is designed specifically to plan for major asset purchases and investments that are typically long-term in nature, such as buildings, vehicles, equipment, or significant upgrades to facilities. This type of budget outlines the expected costs associated with acquiring these assets, the funding sources, and the timeline for the purchases. It is fundamentally different from operational budgets, which focus on day-to-day expenses and the costs incurred for ongoing operations.

The significance of the capital budget lies in its role in helping organizations allocate resources towards projects that will provide benefits over many years. This ensures that the organization can efficiently manage and maintain its infrastructure and essential assets. Capital budgets also involve the evaluation of potential investments to ensure alignment with the organization's strategic goals and financial plans.

In contrast, the other options describe different financial planning aspects. Operational expenses are ongoing costs essential for daily functioning, maintaining existing resources refers to expenditures associated with upkeep rather than acquiring new assets, and a temporary financial plan typically involves short-term budgeting rather than long-term asset investment. Thus, the selection of the capital budget as a plan for major asset purchases is spot on, reflecting its core purpose in financial management.