Signed Number representations are used to solve the problem of representing negative integers in binary. The problem of trying to store the negative sign (−) of a binary number is that there are no states left to use with which to represent the negative assignment. It is not possible to just use 'off' for minus and 'on' for plus because the computer would have no way of knowing whether it was a digit or a sign.

To overcome this issue computer designers invented two methods for storing negative binary numbers: sign-and-magnitude and 2's complement. These produce alternative representations for signed numbers.