This document discusses how computers process data. It explains that processing involves calculations, comparisons, and decisions. Data processing is the collection and manipulation of data to produce meaningful information. Computers represent all information as strings of zeros and ones. The CPU carries out processing by executing a machine cycle of fetch, decode, execute, and store steps. Key physical components involved in processing include the microprocessor chip, memory devices, and motherboard, which contains connectors for additional components and controls peripheral devices.