Computer Science · Spreadsheet Applications
A circular reference in a financial model is problematic because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It automatically deletes linked cells
- 2It prevents the model from being saved
- 3It causes a formula to depend on its own output, leading to calculation errors or infinite loops✓
- 4It makes the model file too large to open
Correct answer
It causes a formula to depend on its own output, leading to calculation errors or infinite loops
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