Let A2:B7 house the sample you provided with labels in A2:B2...

{"Item","Flag";
"Apple",TRUE;
"Banana",TRUE;
"Lemon",TRUE;
"Orange",FALSE;
"Grapefruit",TRUE}

which says: A2 = Item, B2 = Flag, A3 = Apple, B3 = TRUE, etc.

C2 must house a 0.

In C3 enter & copy down:

=IF(B3=TRUE,LOOKUP(9.99999999999999E+307,$C$2:C2)+ 1,"")

In D1 enter:

=LOOKUP(9.99999999999999E+307,C:C)

In D2 enter: Result List

In D3 enter & copy down:

=IF(ROW()-ROW(D$3)+1<=$D$1,LOOKUP(ROW()-ROW(D$3)+1,C:C,A:A),"")

The area in from D3 on will show the desired result list.

Henrik wrote:
Does anyone have any suggestions as to how to build a function that
automatically selects the next observation with a particular value assigned
to it?

For instance, I have a dataset that looks like this (where column A contains
a list of names and column B contains a corresponding value/toggle that can
be either TRUE or FALSE):

Apple TRUE
Banana TRUE
Lemon TRUE
Orange FALSE
Grapefruit TRUE


As the desired function is dragged down, it will only select observations
with a TRUE VALUE in column B. The result would be the following list of
names. If the Lemon toggle was changed to FALSE, the list would no longer
contain Lemon.


Apple
Banana
Lemon
Grapefruit



Thanks,
Henrik