Any business needs computation of profit and loss. The process of computing business computing business profit and loss is known as Accounting. Every business and every group of businesses have their own field of accounting. The following are three main fields of Accounting:
I) Financial Accounting :
All receipts and payments are recorded in a chronological order based on happening of transactions. At the end of a certain period total expenses and loses are deducted from total revenue/ income which results in net gain or loss of the period all other field are also base the same.
II) Cost Accounting/ Manufacturing :
It is also known as manufacturing accounting. In the business of manufacturing or producing the product the profit is fully dependent upon the cost of product. As cost of product in minimum, the profit ratio will be greater.
III) Managerial Accounting :
The financial accounting data is set in order of the management requirement in several dimensions or alternates, which is needed for decision-making and future planning.