How do you format a cell to display currency?

To format a cell to display currency, utilizing the Number Format option and selecting Currency is the appropriate method. This allows you to apply a standardized currency format to your data, which ensures that any numeric value is displayed with the correct currency symbol and formatting conventions (like two decimal places) that are commonly used in financial contexts.

By using the Number Format option, you can also easily change the currency symbol to reflect different types of currencies, such as euros or yen, depending on your needs. This is particularly useful when dealing with financial statements or reports that require consistent formatting for readability and professionalism.

While typing a dollar sign before the number may give the appearance of currency, it does not convert the actual value to a currency format; thus, performing calculations with such entries may lead to errors. Similarly, using conditional formatting or keyboard shortcuts like Ctrl + 1 can manipulate how data appears, but they do not directly apply the specific currency format as effectively as using the Number Format option.