Which budget type involves planning for land, building, and equipment expenses?

The capital budget focuses on planning for long-term investments in assets such as land, buildings, and equipment. This type of budget is essential for businesses and organizations as it outlines how they will allocate funds for these significant expenditures that are expected to provide benefits over multiple years. By utilizing a capital budget, companies ensure that they evaluate the costs and expected returns of investing in physical assets, which are critical for operations and growth.

In contrast, the operational budget pertains primarily to day-to-day expenses and revenues, such as salaries, utilities, and supplies. The cash flow budget is centered around the timing of cash inflows and outflows, ensuring the organization maintains sufficient liquidity to meet its obligations. The pro forma budget is a projection of future financial results, often used for planning purposes but not specifically focused on capital expenses. Thus, the capital budget is distinctly designed for the planning of long-term asset investments, making it the correct choice.