Which type of document is characterized by data arranged in rows and columns?

The correct answer is that a spreadsheet is characterized by data arranged in rows and columns. This format allows users to easily organize, manipulate, and analyze numerical and textual data. Spreadsheets use a grid-like structure, where each cell can hold data items and mathematical formulas. This design is particularly useful for tasks such as budgeting, statistical analysis, and financial forecasting since it supports various calculations and data visualizations.

In contrast, a word document is primarily focused on text formatting and is not structured in rows and columns. While a database may store data in a structured format, it typically operates behind the scenes where data can be queried and managed, rather than directly displayed in a tabular format like a spreadsheet. A presentation, which is designed to display information in a visually appealing manner, often utilizes slides and graphics rather than a structured grid layout for data like that found in spreadsheets. Thus, the unique arrangement of rows and columns distinctly identifies a spreadsheet as the appropriate choice for this question.