Spreadsheet Applications

Originally, spreadsheet applications were viewed as electronic versions of an accountant's ledger. Today's spreadsheet applications can do much more than just calculate numbers — they include powerful charting and data analysis features. Spreadsheet programs can be used for everything from personal budgets to calculating loan payments.

Here are some basic features of a spreadsheet application:

1. Worksheet—an electronic version of an accountant's worksheet. Most spreadsheet applications allow you to combine many worksheets into a single workbook.
2. Row—runs horizontally across the screen and is designated by a number.
3. Column—runs vertically up and down the screen and is designated by a letter.
4. Cell—the intersection of a row and column, designated by the letter of the column, followed by the number of the row. For example, cell A4 is the first cell (A) in the fourth row (4).
5. Formula—calculation which is entered into a cell. The result of the calculation is displayed in the cell. Formula can reference numbers or the values of other cells.
6. Function—preset formula for common calculations such as calculating totals and averages, figuring loan payments, and estimating future values.

Specialized financial software is available for bookkeeping and tax preparation. These programs incorporate some of the functionality of a spreadsheet program, but they utilize a user-friendly interface. For example, rather than developing your own budget spreadsheet in a spreadsheet application, you may want to purchase a personal finance application (such as Intuit's Quicken® or Microsoft® Money 2002 Deluxe).

There are many spreadsheet programs on the market today, including Microsoft Excel, Lotus' 1-2-3, and Corel's Quattro Pro.