This post is a part of the PL-300: Microsoft Power BI Data Analyst Exam Prep Hub; and this topic falls under these sections:
Visualize and analyze the data (25–30%)
   --> Create reports
      --> Apply conditional formatting

Below are 10 practice questions (with answers and explanations) for this topic of the exam.
There are also 2 practice tests for the PL-300 exam with 60 questions each (with answers) available on the hub.

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Practice Questions

Question 1

A table visual should highlight negative profit values in red and positive values in green.
Which conditional formatting option is the most appropriate?

A. Data bars
B. Color scale
C. Rules
D. Field value

Correct Answer: C

Explanation:
Rules allow you to define explicit conditions (e.g., value < 0 = red, value ≥ 0 = green), making them ideal for positive/negative logic.

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Question 2

You want to show the relative magnitude of sales directly inside a table column using horizontal bars.
Which conditional formatting type should you use?

A. Background color
B. Icons
C. Data bars
D. Font color

Correct Answer: C

Explanation:
Data bars display values as horizontal bars within table or matrix cells, making it easy to compare magnitude at a glance.

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Question 3

A report requires gradual color shading from light to dark based on performance values.
Which conditional formatting option supports this requirement?

A. Rules
B. Color scale
C. Icons
D. Field value

Correct Answer: B

Explanation:
Color scales use gradients to represent a range of values, ideal for showing relative differences across data points.

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Question 4

Conditional formatting should be applied to a table column based on a measure rather than the displayed field.
Which option allows this behavior?

A. Rules
B. Color scale
C. Field value
D. Data bars

Correct Answer: C

Explanation:
Field value formatting lets you base formatting on a separate measure, enabling advanced and dynamic formatting scenarios.

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Question 5

Which visual type supports conditional formatting most extensively in Power BI?

A. Pie chart
B. Line chart
C. Table
D. Slicer

Correct Answer: C

Explanation:
Tables (and matrices) support the widest range of conditional formatting options, including background colors, font colors, data bars, and icons.

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Question 6

A business user wants values above a fixed target to appear green and values below the target to appear red.
What is the best approach?

A. Use a color scale
B. Apply data bars
C. Use rules with thresholds
D. Change the theme

Correct Answer: C

Explanation:
Rules allow you to define precise thresholds, making them the best choice when formatting must follow specific business targets.

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Question 7

Which scenario is least appropriate for using conditional formatting?

A. Highlighting underperforming regions
B. Emphasizing high and low values
C. Creating calculated columns
D. Showing trends in tables

Correct Answer: C

Explanation:
Conditional formatting is for visual emphasis, not data modeling or calculations, which are handled with DAX or Power Query.

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Question 8

Why should conditional formatting be used sparingly in reports?

A. It slows down data refresh
B. It increases dataset size
C. Too much formatting reduces clarity
D. It disables cross-filtering

Correct Answer: C

Explanation:
Overusing conditional formatting can overwhelm users and obscure insights rather than clarify them.

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Question 9

A matrix visual uses conditional formatting, but totals are not formatted as expected.
What should you check first?

A. Data model relationships
B. Visual interactions
C. Conditional formatting settings for totals
D. Report theme

Correct Answer: C

Explanation:
Conditional formatting for totals can be configured separately, and defaults may differ from row-level formatting.

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Question 10

What is the primary purpose of conditional formatting in Power BI reports?

A. Improve query performance
B. Replace visual interactions
C. Enhance data interpretation
D. Secure sensitive data

Correct Answer: C

Explanation:
Conditional formatting improves how users interpret data by visually emphasizing important values, patterns, and exceptions.

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