When Solving Decision Trees, What Phrase Represents the Act of Dropping

question 69

Multiple Choice

When solving decision trees, what phrase represents the act of dropping an alternative from consideration because it is less favorable than another available option?

• A) cut the leaf
• B) open the hatch
• C) shake the tree
• D) punt the ball
• E) prune the branch

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Definitions:

Economic Life

The estimated period over which an asset is expected to be economically usable, both for its original purpose or for other purposes.

Bargain Purchase Option

An option in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term at a price significantly lower than the expected fair market value.

Lease Term

The fixed, non-cancellable period of time for which a lease is agreed upon between the lessee and the lessor.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting.