Secured borrowing and a sale of receivables

Receivables can be used to generate cash through two general categories of transactions:

1. A secured borrowing
2. A sale of the receivables

Both of these types of transactions require a transfer of the receivables to a new holder, typically afinancial institution.

Required
Distinguish between a secured borrowing and a sale of receivables as regards the rights of the transferor and transferee as well as regards the accounting for each type of transaction.

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