How can I use the 'Show Formulas' feature to easily identify formula errors?

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Grade: Education Subject: Support
How can I use the 'Show Formulas' feature to easily identify formula errors?
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The 'Show Formulas' feature (found in the 'Formulas' tab or using Ctrl+`) displays the formulas in each cell instead of their results. This is useful for a quick scan to identify any obvious errors in cell references or formulas.