What does AADA mean in ACCOUNTING

AADA stands for Adjusted Attributable Deposit Amount which refers to the amount of deposits that are allocated to an individual or entity based on the deposited amount.

AADA is typically calculated by taking into account factors such as age, income level, debt-to-income ratio, and credit score of the depositor. The calculation also takes into consideration any other associated costs such as ATM fees and overdraft charges. The final number represents the Adjusted Attributable Deposit Amount which can be used by financial institutions when assessing their risk.

AADA helps financial institutions assess their relative risk when considering lending out money or investing into various portfolios through different accounts. Factors taken into account when calculating AADA include age, income level, debt-to-income ratio, and credit score of the depositor which all help determine what kind of risks are associated with investing in specific accounts.

There is no single formula used to calculate AADA as it depends on many variables unique to each individual such as age, income level, debt-to-income ratio, and credit score; however there are some guidelines which most financial institutions use when making their calculations.

Every bank has its own unique approach towards measuring risk, however most banks use some form of Adjusted Attributable Deposit Amount (AADA) when assessing risk levels associated with different loan options offered by customers or potential investments they may make into various portfolios.