Waterfall charts in Excel - Cheat Sheet & Quick Revision

Recall & Review

beginner

What is a Waterfall chart used for in Excel?

A Waterfall chart shows how an initial value is affected by a series of positive and negative values, helping to visualize the cumulative effect step-by-step.

beginner

How do you start creating a Waterfall chart in Excel?

First, organize your data with categories and values. Then select the data and insert a Waterfall chart from the Insert Chart menu.

beginner

What does the 'Total' column represent in a Waterfall chart?

The 'Total' column shows the final cumulative value after all increases and decreases are applied.

intermediate

How can you mark a column as a 'Total' in an Excel Waterfall chart?

Right-click the column in the chart, choose 'Set as Total' to make it a subtotal or total, which changes its color and position.

beginner

Why is a Waterfall chart better than a simple bar chart for some data?

Because it clearly shows how each value adds or subtracts from the total, making it easier to understand changes over time or steps.

What type of data is best visualized with a Waterfall chart?

A Data showing cumulative increases and decreases

B Data with only positive values

C Data with no changes over time

D Data with unrelated categories

Waterfall charts are designed to show how values add or subtract to reach a total.

Which Excel menu do you use to insert a Waterfall chart?

A Formulas > Function Library

B Data > Sort & Filter

C Review > Comments

D Insert > Charts > Waterfall

Waterfall charts are found under the Insert tab in the Charts group.

How do you indicate a subtotal or total in a Waterfall chart?

A Right-click the column and select 'Set as Total'

B Change the cell color in the worksheet

C Add a new row with the word 'Total'

D Use a different chart type

Setting a column as total changes its color and shows it as a cumulative point.

What happens if you do not set any column as a total in a Waterfall chart?

A Excel will automatically set the last column as total

B The chart will not display

C The chart shows only increases and decreases without final totals

D The chart will show a pie chart instead

Without totals, the chart only shows step changes but no final cumulative value.

Which color usually represents decreases in a Waterfall chart by default?

A Green

B Red

C Blue

D Yellow

Decreases are typically shown in red to indicate negative changes.

Explain how to create a Waterfall chart in Excel from scratch.

Think about the steps from data preparation to chart insertion.

Describe why Waterfall charts are useful for financial reports.

Consider how money flows in and out over time.