Which of the following is a long-range projection of capital needs and financing?

A long-range projection of capital needs and financing is best represented by a capital plan. A capital plan outlines the future needs for physical assets, infrastructure, and other capital investments, detailing how those needs will be funded over an extended period, typically five to ten years or more. It takes into account not only the expected expenditure on capital projects but also how those projects align with the strategic goals of the organization.

This type of planning is crucial for ensuring that an entity can adequately prepare for future investments, prioritize projects based on necessity and available resources, and establish a coherent financial strategy that includes potential funding sources. A well-developed capital plan can guide decision-making, promote fiscal responsibility, and ensure that an organization remains capable of meeting its infrastructure needs in a sustainable manner.

While the capital budget focuses on the implementation of capital expenditures for the upcoming fiscal year, the operating budget relates to current operational expenses. The financial overview typically provides a snapshot of the organization’s financial situation at a given point in time rather than focusing specifically on long-range projections of capital needs.