How Well Do You Know Excel File Extensions?

What does a file extension of .xlsm indicate?

1. Macro-enabled workbook

2. XML-standard workbook

3. Excel 2003 workbook

4. Workbook where macros are not allowed

Final answer:

A .xlsm file extension indicates a Macro-Enabled Workbook.

Explanation:

A file extension of .xlsm indicates a Macro-Enabled Workbook. A .xlsm file extension is used with Excel files that contain macros, which are sets of commands that automate tasks within the spreadsheet software. Macros are utilized to simplify repetitive tasks and can be written using Visual Basic for Applications (VBA) within the Excel environment. This type of file is different from other Excel files (like .xlsx) in the fact that it allows macros to be saved and run.

Users must be careful with .xlsm files downloaded from unfamiliar sources, as malicious macros can be embedded. It is important to only open .xlsm files from trusted sources to ensure computer safety.