TestOut Labs Practice Test

Understanding file types and how they’re typically used helps you pick the right one to modify. For a folder dedicated to finances, you’d want a file that is built for handling numbers, formulas, and data entry—an Excel workbook.

The file with the .xls extension is an Excel workbook format designed for tabular data and calculations. It’s the type you’d open, edit numbers, update totals, adjust budgets, and run formulas. A PDF is usually a read-only document, not meant for editing financial data easily. A Word document is a text-focused file, not ideal for working with spreadsheets or numerical analysis. The .xlsx format is also an Excel workbook and would be suitable too, but in this context the intended choice is the older Excel format, which some systems or instructions use for editable spreadsheets in finances.

So, the file 2020report.xls is the best fit because it’s a spreadsheet designed for editing financial data.