The document discusses how computers represent data digitally using binary numbers. It explains that computers use groups of 8 bits called bytes to store each character, number, or symbol. The ASCII table assigns a unique 8-bit binary number to each character, allowing all text, numbers, and punctuation to be stored and processed as digital data composed of bytes consisting of 0s and 1s. Programs and files on computers are also represented using this system, with file extensions helping identify different data types.