What type of financial planning focuses on expected revenue and expenditures over a specific period?

The correct answer is budgets, which are a crucial component of financial planning for any organization. Budgets provide a detailed projection of expected revenues and expenditures over a specific time frame, usually on an annual, quarterly, or monthly basis. By creating a budget, businesses can establish spending limits, prioritize resource allocation, and measure financial performance against their forecasts. This process helps to ensure that the organization remains financially healthy and can meet its obligations.

Additionally, budgets allow for informed decision-making by identifying potential surpluses or deficits, enabling the company to plan accordingly. They play a key role in strategic planning and financial control, as they set clear targets and provide benchmarks against which actual performance can be evaluated.

In contrast, other options like capital plans focus more on long-term financial strategy regarding investments in assets, while cash flow statements reflect historical cash movements without a forecasting intent. Investment analysis emphasizes evaluating potential investments rather than the overarching management of revenues and expenses over time. In sum, budgets are uniquely designed to project and track financial inflows and outflows within specified periods, making them essential for effective financial management.