A Circular Reference Occurs When a Formula Directly or Indirectly

question 65

True/False

A circular reference occurs when a formula directly or indirectly refers to the cell containing the formula.

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Definitions:

Long-Term Debt

Borrowings and financial obligations payable over a period longer than one year.

Equity

Represents the value of an owner's interest in a property or business, calculated as the difference between assets and liabilities.

Capital Acquisitions Ratio

A measure of a company's financial ability to sustain its investment activities.

Operating Activities

Activities that relate directly to the business’s primary operations, such as selling goods and services, as opposed to investing or financing activities.