Which of the following best describes the operating budget?

The operating budget serves multiple purposes and is a comprehensive financial plan for an organization's day-to-day operations. It is primarily designed to reflect the financial policies and priorities of the organization, providing a clear outline of anticipated revenues and expenditures for a specific fiscal period, typically a year.

By defining the operating budget as a financial plan, it establishes a roadmap for resource allocation, helping ensure that funds are used effectively to achieve operational goals. As a policy document, it communicates the values and strategic objectives of the organization to stakeholders, including staff, governing boards, and the public. Additionally, as an operations guide, it stipulates the resources required for various functional areas, allowing departments to track their spending against approved budgets. Lastly, it acts as a communications device by conveying financial intentions and operational strategies to external and internal audiences, fostering transparency and accountability.

In contrast, while the other options touch on specific aspects, they do not encompass the full range of functions served by the operating budget. The summary of revenue sources and limitations provides important information but lacks the comprehensive scope. A compliance report addresses adherence to regulations but does not focus on operational planning. A long-term strategic investment plan is pertinent to capital budgeting, rather than the day-to-day financial management that an operating budget represents.