- Digital computers perform arithmetic operations like addition, subtraction, multiplication and division on binary numbers.
- Signed binary numbers use the most significant bit as the sign bit to represent positive and negative values. Common representations are sign-magnitude, one's complement, and two's complement.
- Subtraction is performed using the two's complement method by taking the two's complement of the subtrahend and adding it to the minuend. Overflow needs to be handled for accurate results.