AAT L3 Spreadsheets for Accounting 3

Question 1

The PMT function in Excel calculates:

Accepted Answer

The periodic payment for a loan or annuity given interest rate, term, and principal

Answer

The future value of an investment

Answer

The present value of a series of cash flows

Answer

The number of periods required to repay a loan

Question 2

When using Excel for accounting purposes, why is it important to separate input data from formulas in different areas?

Accepted Answer

To make it easier to update assumptions without changing formulas, reducing errors

Answer

To make the spreadsheet look tidier

Answer

To reduce file size

Answer

To enable the data to be printed more easily

Question 3

In Excel, a macro is used to:

Accepted Answer

Record and replay a sequence of actions, automating repetitive tasks

Answer

Create a pivot table automatically

Answer

Apply conditional formatting to a range

Answer

Protect a worksheet from changes

Question 4

What is the purpose of 'freezing panes' in Excel?

Accepted Answer

To keep row or column headers visible when scrolling through a large spreadsheet

Answer

To prevent changes to protected cells

Answer

To fix the print area for a worksheet

Answer

To lock the spreadsheet against editing

Question 5

Which of the following is the correct Excel formula to calculate VAT (at 20%) on a net amount in cell A1?

Accepted Answer

=A1*0.2

Answer

=A1+0.2

Answer

=A1/1.2

Answer

=A1*20

Question 6

The Excel IFERROR function is used to:

Accepted Answer

Return a specified value if a formula produces an error, otherwise return the formula result

Answer

Prevent users entering incorrect data

Answer

Identify cells that contain errors in a range

Answer

Validate data entered into a cell