Abstract
Bankrupt corporation cannot occur suddenly, regardless of reasons or decorated financial statement. Financial statement always shows characteristic changes before bankruptcy. This study clarifies the differences between a bankrupt corporation in the black and a non-bankrupt corporation, analyzing the financial statement using the concept of"homeostasis"in biology. The authors quantifies similarity of the balance sheet of the previous and the present term on the several accounts .Breakdown of the similarity will show the characteristic changes of a bankrupt corporation in the black. This enables it to clarify the accounts which cahnge characteristically in a certain period before bankruptcy and the accounts which always change.
