Final answer:
In Excel 2016, the General data format is used to automatically differentiate between text and numerical data entered into cells. This default setting allows Excel to intelligently format and align data according to its type.
Step-by-step explanation:
The data format in Excel 2016 that treats text as text and numbers as numbers is the General format. This is the default format applied to cells when you begin typing in a new worksheet. When using the General format, Excel makes an intelligent decision about the type of data you have entered. If you type text, Excel treats it as text; if you input a number, Excel will handle it as a number.
This means that if you type something that looks like a number (e.g., 1234) or a formula (e.g., =SUM(A1:A10)), Excel will recognize it accordingly and apply number formatting or formula calculation. Text entries, on the other hand, will be left-aligned in the cell, and numbers will be right-aligned, which is a quick visual indication of how Excel is interpreting your data.