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In this lesson, the tutorial explains how to display formulas in an Excel spreadsheet. Initially, users can view the formula of a specific cell, like D3, in the formula bar. To show all formulas, the first method involves navigating to 'File,' then 'Options,' and selecting 'Advanced.' Users should scroll down to find the option labeled 'Show formulas in cells instead of their calculated results' under the display options and click 'OK.' Once activated, all cells containing formulas, including addition, subtraction, and average calculations, will be visible in the spreadsheet.