Detection of insolvency in a business

Businesses adopt the principle of business continuity while continuing their commercial activities. There are many factors that can harm the continuity of businesses, one of which is the state of being in debt. Insolvency is defined as the inability of company assets to meet its debts, although it has various definitions in Turkish legislation. In the first part of the study, the concept of insolvency is mentioned in the bankruptcy of enterprises or in resorting to ways to get rid of bankruptcy. As ways to avoid bankruptcy; ordinary withdrawal agreement, restructuring by compromise, concordat and joining the merger are discussed. In the third part of the study, the form and content of the insolvency balance sheet are mentioned. In the application part, it is determined whether a limited company is in debt or not. The aim of the study is to be a guiding resource for practitioners and contribute to the literature in terms of handling the concept of insolvency and the stages of insolvency detection in an objective and simple way.