If cited wrongly, shows inadequacy (7)
I believe the answer is:
deficit
'inadequacy' is the definition.
(deficit is a kind of inadequacy)
'if cited wrongly' is the wordplay.
'wrongly' indicates an anagram.
'if'+'cited'='ifcited'
'ifcited' is an anagram of 'DEFICIT'.
'shows' is the link.
(Other definitions for deficit that I've seen before include "Arrears" , "Amount of which total falls short" , "Shortfall in revenue" , "Financial shortfall" , "Excess of liabilities over assets" .)