A computer performs five basic functions: input, storage, processing, output, and control. It accepts data through input, stores the data and instructions, processes the data using the central processing unit (CPU), produces output, and has a control unit that coordinates operations. A computer system is divided into three main units - the arithmetic logical unit that performs calculations, the control unit that directs the sequence of operations, and the central processing unit that consists of the arithmetic logical and control units and acts as the computer's brain to make decisions and control functions.