Final answer:
The correct answer is that the company has violated the going concern assumption, which is related to a company's ability to continue operating in the foreseeable future.
Step-by-step explanation:
The president of the company YYZ, with three consecutive years of significant losses and a large payable due without the ability to pay it, has violated the going concern assumption. The going concern assumption states that a company is expected to continue its operations for the foreseeable future and not go into liquidation. This is an essential concept as it influences how financial statements are prepared. Under these precarious financial conditions, especially not addressing these issues in published financial statements, it raises concern for the company’s ability to sustain as a going concern.
The Going Concern principle states that a company should prepare its financial statements under the assumption that it will continue its operations indefinitely. If a company is unable to meet its obligations in the next 12 months and the president does not address this in the financial statements, it violates the Going Concern principle.
In this case, the significant losses incurred for three consecutive years and the inability to pay the large payable within the next 12 months indicate an uncertainty about the company's ability to continue operating.
Therefore, the correct answer is c) Going concern - violated.