Governments May Enter into Short-Term or Long-Term Leases for Nonfinancial

Governments may enter into short-term or long-term leases for nonfinancial assets, such as a building or equipment-for use in its everyday operations. What is a distinguishing factor of a short-term lease?

A) A short-term lease is recorded at the present value of payments expected to made during the lease.
B) A short-term lease has a maximum possible lease term of 12 months or less including any options that are expected to be exercised to extend the lease.
C) A short-term lease provides the lessee with an intangible right to use an asset that should be recorded when the lease is signed.
D) A short-term lease has a maximum possible lease term of three months or less if accounted for in a governmental-type fund.