References In Excel

In formulas references to cells or locations are excel are used. 

What kind of references are there in excel?

Referencing in the same sheet:

Relative: Ex. A1, B1 in the formula =A1*B1 written in the cell C1 is a relative reference. If you will copy paste this formula from cell C1 to C2 the formula will be pasted as =A2*B2 i.e. relative to the positioning of C2, excel is smart enough to find the relative quantities that have to be multiplied. 

Absolute: Ex. $A$1, $B$1 etc is absolute positioning. Why would you absolute positioning? One of the many possible cases is when the formula uses some constant say pi(=22/7). If you have put the value of constant at position say, A1 then you can refer to this constant in all the formulas by $A$1. When you copy paste formula from a cell in this case the $A$1 reference remains unchanged.

Row Absolute: Ex. A$1, B$1 etc i.e. only column will change, row is fixed as 1.

Column Absolute: Ex. $A1, $B1 etc i.e. only row will change, column is fixed as 1.

Referencing to a cell in other worksheet:

The general way is by using 'sheetname'!cell.

Ex: 'Sheet1'!A2

Referencing to cell in other workbook:

'[workbookname.xls]sheetname'!cell

Ex: '[Expenditure.xls]Household'!B3

If the workbook we are referencing to is closed then we have to give its path too as:

'D:\ExcelPractice\[workbookname.xls]sheetname'!cell

Thats it about referencing for now.

PS: Corrections/Suggestions/Comments are welcome!