# Short-term lease

> Short-term lease — 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.

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

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**What is 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.

## Words this system refuses for it

- month-to-month alone

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