FRA EOC Reading 24 Q17: securitized receivables

Had securitized receivables been held on B/S, both assets and liabilities would have been higher.

The wording is very confusing. At 1st I thought SPE is involved so I couldn’t figure out why the both A and L are higher, b/c receivables should be gone and cash will increase, so there should be no change in assets.

If SPE is not involved, then I can understand the answer. However shouldn’t they just ask: “Had receivables been securitizsed” instead? In the text, they said “PDQ does not finance receivables”, then where are securitized receivables from?