The correct answer is: A. Cash budget
A cash budget is a financial statement that projects a company’s future cash inflows and outflows. It is used to help the company manage its cash flow and ensure that it has enough cash on hand to meet its obligations.
A master budget is a comprehensive financial plan for a company. It includes all of the company’s budgets, such as the sales budget, the production budget, and the cost of goods sold budget.
A budget for the key factor is a budget that focuses on the most important factors that affect a company’s financial performance. These factors can vary from company to company, but they often include sales, production, and costs.
A flexible budget is a budget that is adjusted to reflect changes in the level of activity. This type of budget is useful for companies that have variable costs, as it allows them to more accurately predict their future costs.
In conclusion, the cash budget is prepared first of all because it is the most important budget for a company. It helps the company manage its cash flow and ensure that it has enough cash on hand to meet its obligations.