Securitization of Receivables

CFA Level II FRA
#1

This qusetion is based on Reading 24, Q17 in the CFAI book.

  1. If the receivables had been held on the BS instead of being securitized, I understand assets would go back up (since AR is back on the books). However, why does the liability go up as well?

  2. If receivables are securitized, receivables are taken off the books (so credit AR). What is the debit in this case?

Thank you!!

#2

See explanations : http://www.analystforum.com/forums/cfa-forums/cfa-level-ii-forum/91310112