Short-term lease
In accounting, short-term lease means a lease with a term of twelve months or less and no purchase option the lessee is reasonably certain to exercise — may be kept off the balance sheet by policy election.
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- Lexicon
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Authority
This definition follows ASC 842-20-25-2.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- month-to-month alone
Nearby in the catalog
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6Statements
Family specTerms this one depends on
Also in Fixed assets & leases
Work with this concept
The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.
- Journal entry for prepaid rentWhen rent is paid in advance, debit Prepaid rent and credit Cash. At each month-end, debit Rent expense and credit Prepaid rent for the month the space was used.Entry
- Journal entry for an operating lease under ASC 842At commencement, debit Right-of-use asset and credit Lease liability for the present value of the payments. Each payment debits Lease liability and credits Cash; each month-end debits Operating lease cost for the straight-line cost and credits Lease liability for the interest and the right-of-use asset for the rest.Entry
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.