Omission of paise and showing the round figures in financial statements is based on ___________.

conservatism concept

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consistency concept

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materiality concept

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realization concept

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Solution

The correct option is C materiality concept
Materiality Concept states that only those information should be stated in the financial statement which have an impact on the decision making of the users. Here, paise will not have any impact on the decision making of the users therefore, it is an a material information and can be omitted.

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