Why Is Excel an Efficient Tool to Use for Calculation

question 37

Multiple Choice

Why is Excel an efficient tool to use for calculation intensive applications such as creating an amortization schedule for a mortgage?

• A) Formulas can be entered once and quickly copied to multiple cells.
• B) Once a spreadsheet is created it can be used as a template for different loan amounts.
• C) A large number of cells can be formatted at once for easy readability.
• D) All of the above

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Definitions:

Net Operating Income

Net operating income is the total profit of a company after operating expenses are subtracted from gross revenue but before deducting taxes and interest.

Condensed Income Statements

A simplified financial statement that presents a company's net income and revenue summary over a specific period, omitting detailed line items.

Operating Income

Earnings from a firm's core business operations, excluding deductions of interest and tax.

Gross Profit

The financial metric calculated by subtracting the cost of goods sold from the total revenue, representing the profit made before deducting operating expenses.