TRUE Function

What is the TRUE Function?

The TRUE Function[1] is categorized under Excel Logical functions. It will return the logical value of TRUE. The function is equivalent to using the Boolean value TRUE directly in a formula.

In financial analysis, the TRUE function is often used with other logical functions such as IF, ERROR, etc. It is related to the FALSE function. 

Formula

=TRUE()

The TRUE function does not require a parameter or argument.

How to use the TRUE Function in Excel?

As a worksheet function, the TRUE function can be entered as part of a formula in a cell. To understand the uses of the function, let us consider a few examples:

Example 1

If we type =TRUE() in a cell, we get the result as TRUE.

One can also enter TRUE function directly into a cell. Even if we do not add the parentheses, it will return the Boolean value TRUE.

Example 2

Now, let’s consider another example. Using the formulas below, the TRUE function will return the Boolean value TRUE.

The data and formula used are:

We get the results below:

We can also enter the value TRUE directly into cells and formulas without using the function. For example:

=IF(A1=1, TRUE)

If the condition is met in this example, Excel returns TRUE. If the condition is not met, Excel returns FALSE. We can use either of the formulas:

=IF(A1=1,TRUE())  or

=IF(A1=1,TRUE)

Logical values like TRUE drive the IF statements and flags that switch scenarios on and off in financial models. This guide to learning financial modeling skills explains which finance roles depend on that kind of logic.

A few things to remember about the Function

1. The function is provided for compatibility with other spreadsheet applications; it may not be needed in standard situations.
2. If we want to enter TRUE, or if we want to provide TRUE as a result in a formula, we can just enter the word TRUE directly into a cell or formula and Excel will interpret it as the logical value TRUE. For example:

=IF(B1<0, TRUE())

=IF(B1<0, TRUE)

3. We also need to remember that logical expressions themselves will automatically generate TRUE and FALSE results.
4. This function was introduced in MS Excel 2007.

Click here to download the sample Excel file

In practice, TRUE is usually combined with functions like IF, AND and OR. This guide to the top Excel formulas for financial analysts covers the functions you’ll use most in finance work.

Use Logical Functions in Financial Models

Logical tests are what allow a single model to handle different scenarios, from the base case to the downside. When you’re ready to build those models yourself, this list of the best financial modeling courses covers beginner to advanced programs. If you want to prove your Excel skills first, this guide on how to choose an Excel certification course explains what matters most.

Additional Resources

Thanks for reading CFI’s guide to important Excel functions! By taking the time to learn and master these functions, you’ll significantly speed up your financial analysis. To learn more, check out these additional CFI resources:

• Excel Functions for Finance
• Advanced Excel Formulas You Must Know
• ISNONTEXT Function
• FALSE Function
• RTD Function
• See all Excel resources