Question

Logical functions, such as the IF and IFS functions, provide accountants with a lot of power to ensure that accurate and correct data is processed in Excel. Identify and discuss at least three (3) types of accounting worksheets that will benefit from using logical functions like the IF function. Explain why these worksheets would benefit from the use of logical functions. Justify your response.

Answer 1

Answer :-

The above statement is true that "Logical functions, such as the IF and IFS functions, provide accountants with a lot of power to ensure that accurate and correct data is processed in Excel" because

• it act upon an expression to return information about the values or sets in the expression,

• it is helpful to trace the conditional results, and hence can be used for sensitivity and scenario analysis

• This power of logical function can be used for analysis and accurate processing of data.

• These functions are used to assess the contents within cell locations and produce custom outputs or mathematical computations.

The three (3) types of accounting worksheets that will be benefited from using logical functions like the IF function are :

1. Personal Investment portfolio workbook : To know the value (present and future) of the investment made by any investor, this workbook is used, the logical functions like IF and IFS is used getting the value and setting the scenarios.
2. Capital Budgeting worksheet : To know about whether what mixture of cost and debt would be appropriate, through IF and IFS function can be explained and stated
3. Lease payments worksheet : To calculate the yearly lease payments and sue amount of each year with different options (lease or buy), such Logical functions can be used

Step-by-step explanation :-

Function Description

IF Checks if a condition provided as the first argument is met.

IF.EAGER Uses eager execution to check if a condition provided as the first argument is met.

IFERRORE valuates an expression and returns a specified value if the expression returns an error