This document discusses binary coded decimal (BCD). It defines BCD as a numerical code that assigns a 4-bit binary code to each decimal digit from 0 to 9. Numbers larger than 9 are expressed digit by digit in BCD. BCD is used because it is easy to encode/decode decimals and useful for digital systems that display decimal outputs. The document also describes how addition and subtraction are performed in BCD through binary addition rules and handling carries.