# Operating lease

> Operating lease — Under ASC 842, a lessee lease that is not a finance lease — on the balance sheet, with a single straight-line lease cost in the P&L.

Source: https://lopifi.com/glossary/operating-lease
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is operating lease?** In accounting, operating lease means under ASC 842, a lessee lease that is not a finance lease — on the balance sheet, with a single straight-line lease cost in the P&L.

## Words this system refuses for it

- off-balance-sheet lease (no longer, since ASC 842)

- **Category:** Fixed assets & leases
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** balance-sheet, finance-lease