During the year ended December 31, 2009, Canadian National Railway Company transferred accounts receivable of $2 million

Question:

During the year ended December 31, 2009, Canadian National Railway Company transferred accounts receivable of $2 million to an independent trust in a transaction known as securitization. In 2010, this was not done.

(a) Why might a company like Canadian National securitize its receivables?

(b) Why would it cease doing so?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...