Tanzania Institute of Accountancy

(TIA)
Microsoft Excel: Part 1
 Microsoft Excel Definition
Excel is a software program created by Microsoft that
uses spreadsheets to organize numbers and data with
formulas and functions.
 Microsoft Excel Definition
You can use Excel to create and format workbooks (a
collection of spreadsheets) to analyze data and make
more informed business decisions. Specifically, you
can use Excel to track data, build models for analyzing
data, write formulas to perform calculations on that
data, organize the data in numerous ways, and
present data in a variety of professional-looking
charts.
 Terminologies for Excel
1. Workbook
A workbook is a spreadsheet program file that you create in
Excel. A workbook contains one or more worksheets. A
workbook can contain many worksheets. Think of it as a
book. The book (workbook) usually has a single topic, such
as your budget. Each page (worksheet) within the book
contains part of that topic, such as the budget is broken
down into months.
2. Worksheet
A worksheet consists of cells in which you can enter and
calculate data. The cells are organized into columns and
rows. A worksheet is always stored in a workbook.
3. Active sheet (Current Sheet)
The sheet that you're working on in a workbook. The name
on the tab of the active sheet is bold.
4. Cell
Cells are the boxes you see in the grid of an Excel worksheet, like
this one. Each cell is identified on a worksheet by its reference,
the column letter, and the row number that intersects at the
cell's location. This cell is in column D and row 5, so it is cell D5.
5. Active cell
The selected cell in which data is entered when you begin
typing. Only one cell is active at a time. The active cell is
bounded by a heavy border.
6. Cell Reference
A cell reference is the name of the cell that is found by
combining the Column Letter with the Row Number. For
example, the cell in Column "C" in Row "3" would be cell C3.
7. Column
Columns run vertically on the spreadsheet screen. An
Excel spreadsheet contains 256 columns that are
labeled with the letters of the alphabet. When the
column labels reach the letter "Z" they continue with
AA, AB, AC...... AZ and then BA, BB, BC.....BZ etc.
8. Row
A row in Excel is a horizontal alignment of cells and it
runs from left to right across the worksheet. Each row
is identified by the unique number on its left side
from where it started.
9. Formula
A formula is a spreadsheet data type that will calculate a
result and display it in the active cell. A formula is written
using cell references and must begin with an equal sign "="
to distinguish it from a label. An example of a formula
would be: =A3+C3 which would take whatever value was
entered into cell A3 and add it to the value that was typed
into C3. After typing the formula and pressing the Enter
key, the resulting value will be displayed.
10. Formula Bar
The formula bar appears directly above the column headings
of a spreadsheet and will display what has been typed into the
active cell. For example, if you click on a cell that contains the
formula =A3+C3, the cell itself will show the result of the
formula. The formula bar, however, will display what has been
typed into the cell which, in this case, is =A3+C3.
11. Function
Functions are built-in formulas that are used to enter either
commonly used or very complex formulas. Like formulas,
functions begin with an equal sign "=" and use cell
references in their format. One commonly used function is
the Sum function, which will add up the values in a range.
The function: =sum (H2:H25) would add all values contained
in cells H2 through H25 and return the result when the enter
key is pressed.
11. Range
A range is a group of cells in a spreadsheet that have been
selected. If the cells are all together in a rectangular or square
shape, it is an adjacent range. An adjacent range is identified
by the cell reference in the upper left and lower right corners
of the selection separated by a colon. (Example: A3:B5). In
this example, the range would include all cells in the
rectangular area formed by beginning the highlighting in cell
A3 and dragging down to B5. You can consider the colon as
the word "through". In this case, the range would include cells
A3 through B5.
12. AutoFill
This feature enables users to copy data to more than
one cell automatically. With two or more cells in a
series, a user can select both cells and drag the
bottom right corner down to autofill the rest of the
cells.
13. PivotTable
This data summarization tool sorts and calculates data
automatically. This is located under the insert tab on the far
left.
14. PivotChart
This chart acts as a visual aid to the Pivot Table, providing
graph representations of the data. It is located under the
middle of the insert page, next to maps.
 Uses of Microsoft Excel
1. Data Entry
Excel serves as a powerful platform for entering,
organizing, and managing large volumes of data
efficiently. Its grid-based structure makes it easy to input
data in a structured format. For example - customer
mailing list, employees’ work reports, employees’ shift
rotations, etc
2. Calculations
Excel's built-in formulas and functions enable users to perform
complex calculations quickly and accurately. From simple
arithmetic operations to complex financial modeling, Excel
provides a robust framework for performing a wide range of
calculations. Some most common functions in an Excel
function library include financial, logical, text, date & time,
math, and trigonometry. We can also create our custom
formulae with some programming skills or use macros in
addition to the existing functions
So, we do not need to do the entire task again and again.
Once we have created the specific set of functions, we
must put corresponding values to get the desired results.
With Excel, we can perform almost every type of
calculation (addition, subtraction, multiplication, division,
etc.), and it is one of the best uses of MS Excel.
3. Data Analysis and Interpretation
Excel offers a suite of tools for analyzing and
interpreting data. Users can apply various statistical
functions, create pivot tables, and generate charts
and graphs to gain insights from their data.
4. Reporting and Visualizations
Excel allows users to create visually appealing reports
and presentations by incorporating charts, graphs,
and tables. It enables users to present their data
clearly and concisely, making it easier to communicate
insights and findings.
5. Accounting and Budgeting
Excel is widely used for accounting and budgeting
purposes. It provides templates and functions tailored
for managing financial data, tracking expenses,
creating budgets, and generating financial statements.
6. Collection and Verification of Business Data
Excel can be used to collect, organize, and verify
business data from various sources. It provides tools
for data validation and cleansing, ensuring the
accuracy and integrity of the data.
7. Calendars and Schedules
Excel can be used to create calendars, schedules, and
planners for organizing tasks, events, and
appointments. It offers customizable templates and
tools for managing time-related information
effectively.
8. Administrative and Managerial Duties
Excel is valuable for performing administrative and
managerial tasks such as project management,
inventory tracking, employee scheduling, and
performance tracking. Its flexibility and scalability
make it suitable for a wide range of administrative
functions.
9. Forecasting
Excel facilitates forecasting and predictive analysis by
allowing users to create models and scenarios based
on historical data. It enables users to project future
trends, anticipate outcomes, and make informed
decisions.
End