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Excel allows you to type various data types such as text, decimals, percentages, dollar amounts, and dates. Number formats in Excel determine the type of data being used. Excel automatically applies the correct number format when data is entered into a cell. For example, entering 1/1/2015 sets the date number format. The number format drop-down menu on the Home tab allows for choosing different formats, with the general format being the default for all cells in the spreadsheet.