Practice Test GeeksAAT Level 3 Practice Test
← All AAT L3 Flashcard Decks

Spreadsheets for Accounting Flashcards

6 cards from real AAT L3 practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Spreadsheets for Accounting flashcards as text

  1. The PMT function in Excel calculates:

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

    PMT(rate, nper, pv) calculates the fixed periodic payment needed to repay a loan (or receive from an annuity) at a given interest rate over a specified number of periods.

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

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

    Separating input cells (data/assumptions) from formula cells follows good spreadsheet design practice; it makes the model easier to update, audit, and check, and reduces the risk of errors when changing inputs.

  3. In Excel, a macro is used to:

    Answer: Record and replay a sequence of actions, automating repetitive tasks

    A macro records a series of actions (keystrokes and commands) that can be replayed to automate repetitive tasks, such as formatting reports or running regular data processing routines.

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

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

    Freeze Panes locks specified rows and/or columns in place so they remain visible as you scroll through a large dataset, making it easier to see column or row headings at all times.

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

    Answer: =A1*0.2

    VAT at 20% on a net amount is calculated as net × 0.20 (i.e., the net amount × 20%). To find the gross amount, the formula would be =A1*1.2; to extract VAT from a gross amount, use =A1/1.2*0.2 or =A1-(A1/1.2).

  6. The Excel IFERROR function is used to:

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

    IFERROR(value, value_if_error) evaluates a formula; if it produces an error (such as #DIV/0! or #N/A), it returns the specified alternative value instead of displaying the error code.