This is a tricky question, because it asks you to use your subjective judgement rather than answering objectively. As such, you'll have a wide range of latitude in your response — and you should have a well thought-out reply prepared that demonstrates both your proficiency with Excel and your wide range of past experience using spreadsheets.
Here are a couple of our top recommendations for features, formulas, and functions to discuss:
INDEX MATCH. VLOOKUP and INDEX MATCH are two of Excel's most important and commonly-used functions. As veteran Excel users know, they're used to look up values from an external table, and are important parts of automating your work with dynamic spreadsheets. One of the two is bound to come up in any Excel interview, but if you get this question, we recommend bringing up INDEX MATCH. It's a slightly more useful function, and also lacks many of the disadvantages of VLOOKUP, like the inability to insert new rows and columns into your sheets. If you go with this function, outline how you've used it in the past to dynamically lookup values and populate columns of data that would otherwise need to be manually copied and pasted.
IF statements. IF statements are another staple of any Excel veteran's arsenal. Bring them up to let your interviewer know that you've created advanced spreadsheets that make decisions based on criteria calculated in real-time.
PivotTables. PivotTables are an extraordinarily useful tool, and if you're applying for a job that requires intermediate or advanced Excel knowledge, they're sure to be an important criteria used by your interviewer. You may have used PivotTables for any number of things in the past, but be sure to emphasize how useful they are when quick, accurate calculations are necessary based on large sets of data with hundreds or thousands of rows.
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