What is the Full form of CAD? CAD Meaning and Definition

CAD Full Form – Capital Account Deficit or CAD is a term related to macroeconomics and international finance. This term refers to the debit balance in a Member’s Capital Account at the end of a taxable year. It is a term indicating loss of a company. Capital Account Deficit means that the equity or the difference between the total of all assets and liabilities recorded on a company or an entity’s balance sheet has got a negative value. It indicates that the number of liabilities and its value is more than the number of assets and its value. CAD can ruin the reputation and the future of a company. A company having CAD is said to be bankrupt. However CAD is not a permanent value. The difference between the two values can become positive in many ways. For that, the management of the company must cut down the value of liabilities, so that it can be lesser than the value of the assets.


 

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