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Burasak Enterprise encountered financial difficulties and was not able to pay all its debts since January...

Burasak Enterprise encountered financial difficulties and was not able to pay all its debts since January 2019. In December 2019, the business was declared bankrupt. This indicates that the business has lost its ____ concept.

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Answer #1

Answer: Going Concern Concept

Explanation: Going Concern Concept means that any organization will continue to operate its business for the forseeable future. Going Concern is an accounting term for a company that is financially stable enough to meet its obligations and continue its business for the foreseeable future. If a business continously fails to pay its debts and ultimately becomes bankrupt, it means that such business is not a going concern business anymore.

In the given case, Burasak Enterprise was not able to pay all its debts since January 2019 and in December 2019, the business was declared bankcrupt. This indicates that the business has lost its Going Concern concept and is no more a going concern entity.

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