What is a 'cell reference' in Excel?

A cell reference in Excel is indeed a specification of a cell's location in a spreadsheet. This cell reference identifies a specific cell based on its column letter and row number, such as A1 or B2. When you use a cell reference in formulas or functions, Excel can access the data in the specified cell, allowing users to perform calculations, summarize data, or incorporate values from different areas of the spreadsheet efficiently.

The importance of the cell reference lies in its ability to create dynamic relationships within your data. For example, if you change the value in a referenced cell, any formulas using that reference will update automatically to reflect the new value. This enhances the interactivity and adaptability of spreadsheets in data management and analysis tasks.

In contrast, other options relate to different aspects of Excel workflows; for example, including formulas or formatting methods that serve distinct purposes. However, cell references specifically pertain to locating and identifying the cells themselves, making this understanding foundational for working effectively with Excel.