Making the right choices with your money—managing your money—involves knowing how to:

• A. apply principles of personal accounting to track income and expenses
• B. prepare consolidated financial statements for multinational corporations
• C. conduct forensic audits for legal proceedings
• D. calculate depreciation using the double-declining balance method for corporate assets

Answer: (A)

Verified step by step guidance

1. Understand the context of the question: The focus is on managing personal money effectively, which involves principles of personal accounting rather than corporate or forensic accounting.
2. Clarify the concept of personal accounting: Personal accounting involves tracking income and expenses, budgeting, and ensuring financial stability for individuals or households.
3. Eliminate irrelevant options: Preparing consolidated financial statements, conducting forensic audits, and calculating depreciation for corporate assets are tasks related to corporate or specialized accounting, not personal money management.
4. Focus on the correct principle: Applying principles of personal accounting to track income and expenses is the most relevant choice for managing personal money effectively.
5. Conclude that the correct answer aligns with the goal of managing personal finances, which is to apply personal accounting principles to track income and expenses.