☛ The 2nd bit of the flag register is set when output flows to the sign bit.

☛ This flag is also called as the overflow flag.

☛ Here the output of the signed number operation is too large to be accomodated in 7 bits.

☛ For signed numbers the MSB is used to indicate the whether the number is positive or negative.

☛ It is only used to detect errors in signed number operations.