Omission of paise and showing the round figures in financial statements is based on
A)Conservatism Concept
B)Consistency Concept
C)Materiality Concept
D)Realization Concept

Question

Quizplus · Accepted Answer

The omission of paise and showing round figures in financial statements is based on the Materiality Concept. This concept suggests that items or information should be considered material if their omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements. Small amounts like paise are often considered immaterial and thus are omitted for the sake of clarity and simplicity.

Omission of Paise and Showing the Round Figures in Financial