Question

the =iferror() function is useful to show uncalculatable ratios as a number such as zero in the denominator

Group of answer choices

True

False

Answer 1

Answer:

The IFERROR function in MS Excel has two inputs and the syntax is is =IFERROR(value,value_if_error).

In this case, the first input 'value' can be a formula to calculate some financial ratio, and the second input 'value_if_error' can be an alternative formula to be used or value to be displayed in case the formula in first input parameter results in an error.

For instance, while calculating the P/E (price-to-earnings) ratio for a company whose price per share is $2.5 and earnings per share for past 12 months is $0.0, then the trailing P/E as per the formula =2.5/0.0 will result in the error #DIV/0!. However, using IFERROR can be useful to display a value or message of your choice, as follows:

=IFERROR(2.5/0,"Not Meaningful") will display "Not Meaningful" instead of an error in this case, and so on...

Hence, the answer is True.