Stone Company,a publicly traded company,delivers twenty truckloads of Stone to Mortar Company prior to December 31,2014,the end of Stone's fiscal year.Stone normally enters into a written sales agreement with customers similar to Mortar Company.The written sales agreement must be signed by both companies in order to be binding.Although the purchasing department of Mortar has orally agreed to the sale,Mortar management cannot sign the agreement until it is approved by the legal department of Mortar.Personnel of the legal department of Mortar will be on vacation until January 5,2015.
Can Stone recognize on its income statement for the year ending December 31,2014,the revenue related to the twenty truckloads delivered to Mortar? Explain.

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The Answer of Stone Company,a publicly traded company,delivers twenty truckloads of Stone to Mortar Company prior to December 31,2014,the end of Stone's fiscal year.Stone normally enters into a written sales agreement with customers similar to Mortar Company.The written sales agreement must be signed by both companies in order to be binding.Although the purchasing department of Mortar has orally agreed to the sale,Mortar management cannot sign the agreement until it is approved by the legal department of Mortar.Personnel of the legal department of Mortar will be on vacation until January 5,2015.
Can Stone recognize on its income statement for the year ending December 31,2014,the revenue related to the twenty truckloads delivered to Mortar? Explain.

Stone Company,a Publicly Traded Company,delivers Twenty Truckloads of Stone to Mortar