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Generally that is what happens, though you can get it to be sophisticated in how it comes to its resulting value. It is also possible to have nested IFs where the True or False may actually result not in a value but in another IF function being activated. You can also get it to activate other functions which will determine a result. See the related question below.

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Q: Does the IF function display one value if the specified condition is true and a different value if the condition is false on Excel?
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