zak organization is a not for profit organization set up for famine relief zak has been operating for 25 years and has/

1. Briefly explain (do not provide journal entries) how each of the three donations should be accounted for using the deferral method of accounting. In particular, should each of the donations be recognized as revenue for the year ended December 31, 20X3?
2. Despite the recent donations from its former director, Zak is increasingly faced with severe budgetary constraints. Zak is considering implementing encumbrance accounting in the coming year.
a) Briefly describe the process of encumbrance accounting.
b) Briefly describe how encumbrance accounting might serve as a device to help control spending when it is used in conjunction with a formal budgeting system.