Final answer:
Answer C) The decision to purchase long-term assets is part of a strategic plan, is correct. Capital expenditures involve the acquisition of long-term assets which are significant investments, as opposed to inexpensive items which would be operational expenses.
Step-by-step explanation:
The correct statement regarding the capital expenditures budget is: C) The decision to purchase long-term assets is part of a strategic plan. Capital expenditures refer to the purchases of long-term assets that a company expects to use for several years, such as producer's durable equipment and software, nonresidential structures like factories, offices, and retail locations, along with changes in inventories. These are major investments that are crucial for the long-term strategic positioning and operational efficiency of the business. Installment payments for these assets could be included in the capital expenditures budget, but they are not the defining characteristic. Furthermore, capital expenditures are definitely not purchases of inexpensive items like office supplies, which would be classified under operating expenses.