The correct answer is: A. When you use multiplication, division, or exponentiation in a formula.
Rounding errors can occur when you use multiplication, division, or exponentiation in a formula because these operations can result in numbers that are too large or too small to be represented exactly in the computer’s memory. For example, if you multiply 100 by 100, the result is 10,000. However, if you store this number in a cell with only two decimal places, it will be rounded to 1000. This rounding error can cause problems if you are using the formula to calculate other values.
Options B, C, and D are incorrect because they do not describe situations in which rounding errors can occur. Option B is incorrect because addition and subtraction are not operations that can result in numbers that are too large or too small to be represented exactly in the computer’s memory. Option C is incorrect because Excel does not use hidden decimal places in computation. Option D is incorrect because showing the results of formulas with different decimal places than the calculated results does not cause rounding errors.