Accounting Information System (AIS2013) Chapter 2: Microsoft® Excel® 2013

CHAPTER 2:

INTRODUCTION
MICROSOFT® EXCEL® 2013

LEARNING OBJECTIVES

At the end of this chapter, student should be able to:

1. Explain Excel spreadsheet and its basic functions

2. Understand elements in an Microsoft®Excel®Window

3. Explain Relative Cell Referencing and Absolute Cell Referencing

4. Enter data, formulas and functions into a worksheet
5. Save a worksheet

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Accounting Information System (AIS2013) Chapter 2: Microsoft® Excel® 2013

A. INTRODUCTION

Spreadsheet • Is a large accounting ledger page with many columns and rows
• Shows various quantitative information useful for managing
business
• It is commonly used to gather large amount of financial data
Computer spreadsheet • Is an interactive computer application for organization, analysis
and storage of data in tabular form.
• Spreadsheets are developed as computerized simulations of
paper accounting worksheets
Microsoft®Excel® • Is one of the electronic or computer spreadsheet programs that
can be used to enter and organize data
• Perform any application that requires the analysis and
manipulation of numbers
• Used as a database program to organize and track large
quantities of business data.

Purposes spreadsheet applications:

i. Preparation of statements such as trial balance, income statement, financial position and cash
flow can be performed easily if these statements are required repetitively in the same format with
only figures different. Accountant can only change the data in the worksheet.

ii Ensure speedy completion of accountant’s work ,uniformity and consistency in the format used.

iii. Provides a number of powerful features which can speed up in answering “What If” questions.

iv. Can prepare analysis based on mathematical, financial and statistical calculations.

v. Numerical data becomes much comprehensible when it is presented in graphical format.

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 Accounting Information System (AIS2013) Chapter 2: Microsoft® Excel® 2013

Workbook=Excel file

Quick Access Toolbar Command Tabs Title box

File Menu Command

Ribbon Ribbon

Name box

Command Groups

Column headers or column letters

Active Cell

Row headers or row numbers

Sheet Tabs Insert Worksheet Icon

Worksheet =work area, collection of worksheet 3

Status bar
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Figure 2.0
Accounting Information System (AIS2013) Chapter 2: Microsoft® Excel® 2013

B. MICROSOFT® EXCEL® 2013: OVERVIEW

Workbooks (Folder) • Excel® file is call workbook (workbook name is indicated in the
title box as Book 1 Book 2,etc.)
• It can be replaced with a file name of the user’s choice
• Is made up of columns and rows which form a grid
• Each workbook contains at least one computerized spreadsheet
called a worksheet
Worksheets • Electronic spreadsheet with work area framed by grid of columns
and rows
• A collection of related worksheets
• There are sheet tabs at the bottom of the worksheet named
Sheet1, Sheet 2, etc.
• These sheet tabs can be renamed.
• New worksheet can be created by clicking Insert Worksheet icon
Columns • Vertical divisions of the worksheet
• Sequential letters (A, B, C, D, E etc.) across the top of the
worksheet represents column headers or column letters.
Rows • Horizontal division of the worksheet
• The sequential numbers (1,2,3,4,etc) down the left side of the
worksheet represent row headers or row numbers
Cell • Intersection of a column and a row
• The highlighted or selected cell is called active cell
• Cell address stated by its column position first then its row
position.
• Cell address is a unique location in the worksheet, intersecting
column and the row that form the cell
(Column D and Row 12=D12)
• Cell address can be seen in name box.
• Cell Range is a group of cells

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 Accounting Information System (AIS2013) Chapter 2: Microsoft® Excel® 2013

• File Menu
Quick Command

• Ribbon
1. Command Tabs : represent core task carried out in Excel®
2. Command Groups : related commands that are grouped together
3. Commands : is a button, a box to enter information or a menu

• Command Tabs

Home Tab

• The Insert Tab

Insert Tab

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Accounting Information System (AIS2013) Chapter 2: Microsoft® Excel® 2013

• The Page Layout Tab

Page Layout Tab

• The Formulas Tab

Formula Tab

• The Data Tab

Data Tab

• The Review Tab

Review Tab

• The View Tab

View Tab

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Accounting Information System (AIS2013) Chapter 2: Microsoft® Excel® 2013

• Acrobat Tab

Acrobat Tab

• Quick Access Toolbar Quick Access Toolbar

- Assists the user to quickly perform certain tasks by clicking the icons representing
tasks shown in this toolbar.
- User can customize this toolbar by selecting tasks of their choice such as save, undo,
redo

• Status Bar, Layout Selector and Zoom Slider

1. Status bar shows the status of certain selected tasks

- Can be customized by clicking the mouse right hand button.
- Examples of the functions are Cell Mode, Num Lock, Cap Lock, Scroll Lock, Macro
Recording

2. Layout Selector – provides a few options for the document layout to be shown on
screen (Normal, Page Layout, Page Break Preview)

3. Zoom slider provides two options namely Zoom out (to make an object appear
smaller or farther away, to increase the area in a view) Zoom in (to make an object
bigger or closer, or to decrease the area in view)

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Accounting Information System (AIS2013) Chapter 2: Microsoft® Excel® 2013

C. ENTERING DATA

Values represented by numbers

Words as a text

Figure 2.1

D. ENTERING FORMULA AND FUNCTION

Formula • Start with = sign

• E.g: E14= E12 - E9
• User-created formula
• Use mathematical operators in creating formula:
Operator Operation
+ Addition
- Subtraction
* Multiplication
/ Division
^ Exponentiation
= Equal to
< Less than
> Greater than
<= Less than or equal to
>= Larger than or equal to
<> Not equal to

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Functions • Built-in formulas

• Financial (=SLN, =DDB,=IRR,=NPV,=PV)
• Date(=DATE)
• Mathematical (=SUM)
• Statistical (=AVERAGE,=MAX,=MIN)
• Logical (=AND,=IF,=NOT,=OR)

Relative Cell Referencing • When copied formula across multiple cells, the formula change
automatically based on the relative position of rows and columns
• Represent by symbols (+ and =)
• Copy the formula =E7+E8 from row H7 to row H8, the formula
will become =E8+E9.
• Relative references are convenient whenever user need to
repeat the same calculation/text across multiple rows or columns

Absolute Cell Referencing • Absolute Cell References arise in which the cell reference must
remain the same when copied formula across multiple rows or
columns or when using AutoFill.
• $ signs are used to hold a column and/or row reference constant.
• Copy the formula =$E$7+$E$8 from row H7 to row H8, the
formula will become =$E$7+$E$8

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 Accounting Information System (AIS2013) Chapter 2: Microsoft® Excel® 2013

E. RELATIVE CELL REFERENCING IN A WORKSHEET

1. Complete Income Statement data as shown in Figure 2.2 below:

Moving borders = marquee

Figure 2.2

2. Enter plus (+) sign or equal sign (=), Relative Cell Referencing) in cell H24 and the cell highlight
B7 as displayed above.

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3. Press ‘Enter’. Data in cell B7 will appear in cell H24. Cell H24 is now linked to cell B7. Any changes
made in cell B7, data in cell H24 will change accordingly as shown below:

Figure 2.3

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4. ● Highlight cell E7, a moving borders called marquee will appear.

● Type +E7 in cell L24 and press enter, data in cell L24 will change accordingly as shown
below:

Figure 2.4

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● Data in cell B7 and E7 will appear in cell H24 and L24. Cell H24 and L24 are now linked to cell B7
and E7. Any changes made in cell B7 and E7, data in cell H24 and L24 will change accordingly as
shown below:

Figure 2.5

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● Copy the cell from H24 to H27 using the Fill Handle (small black plus sign +) by moving the cursor
to the bottom-right-end of cell H24→Do not release the button and drag down up to cell H27.

● Do the same steps to link cell L24 up to cell L27. The results are shown below:

Figure 2.6

● At cell L28 use AutoSum function to total up the expenses.

● At cell H30 type Net Profit

● At cell L30 = L21-L28

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5. To display formula →Go to formula tab → Click at Show formulas icon and
the worksheet will displayed the formula as below:

Figure 2.7

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6. Apply relative referencing in different worksheet (Sheet 2) helps users to have the same in cells
of the origin and targeted cells.

Figure 2.8

The result will displayed as below:

Figure 2.8(a)

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F. ABSOLUTE CELL REFERENCING IN A WORKSHEET

1. Prepare Sales report as follows:

Figure 2.9

2. At Cell C9 =$D$4*C8 (Absolute referencing) → Copy the formula to E9 horizontally and the results
displayed as below:

Figure 2.10

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3. To display a formula→ Go to formula tab → Click at Show formulas and the worksheet displayed
as below:

Figure 2.10 (a)

4. Apply absolute referencing in different worksheet and the outcome displayed as below:

Figure 2.10 (b)

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Figure 2.10 (c)

G. SAVING A WORKSHEET

Go to File menu → Choose Save As at the quick command in the top of left navigation panel →
Save

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Excel file Title

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Accounting Information System (AIS2013) Chapter 2: Microsoft® Excel® 2013

H. EXERCISES

1. Explain the functions that can be performed by an electronic or computer spreadsheet

programs.

2. Differentiate between workbook and worksheet.

3. List and describe mathematical operators.

4. Define functions. Give and describe any three functions that you know.

5. Differentiate between relative cell referencing and absolute cell referencing. Explain and give an
example for each of them.

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