👉 In accounting, "deficiency" is a statement that indicates an amount of income or expense that is not sufficient to cover all of the necessary expenses and liabilities. This can happen due to various reasons such as insufficient funds in the bank account, lack of proper documentation, or mismanagement of financial resources. The term is often used to describe situations where a company has exceeded its budgeted income or expenses, leading to an imbalance between these two areas. Deficiency can be classified into three categories: 1
