I claim :
The sign of a binary number exists only in the mind of the programmer.
For any fixed number of bits the binary system is cyclic.
That is, it starts at zero where all bits are 0's and increments until all bits are 1's, meaning it's reached the largest number that can be represented with that many bits.
The next increment after all 1's flips it back to starting point, all 0's.
So - with N bits we can represent 2^N different values.
It is usually chosen to let half those values be negative and the other half be positive.
Further it is (i think) universally chosen to let all 0's represent zero.
Let us take a four bit counter for a simple example.
We'll start at zero, then increment the counter by one [STRIKE]seventeen[/STRIKE] sixteeen times, because 2^4 = sixteen and that's how many numbers we can represent with four bits.. [STRIKE]seven[/STRIKE] sixteenth increment should restart the count.
and we want to show the cyclic nature of binary counting.
0000 = zero
0001 = one
0010 = two
0011 = three
0100 = four
0101 = five
0110 = six
0111 = seven = largest positive number that can be represented with four bits IF you want luxury if signed numbers
1000 = -seven = largest negative number that can be represented with four bits IF you want luxury if signed numbers , or = +eight if you don't
1001 = -six = still counting up
1010 = -five
1011 = -four
1100 = -three
1101 = -two
1111 = -one if you want luxury of signed numbers, or = +fifteen if you don't
0000 = zero , still counting up, but the leading 1 disappeared off left end. (In a real machine thet'd be a carry bit but we are just studying nature of a 4-bit binary system here.)
0001 = one , and cycle starts again.
So you see that it is convenient but not necessary to use leftmost bit for sign.
We could as easily have used the four bits to count from zero to fifteen.
Count those increments to make sure i got [STRIKE]seventeen[/STRIKE] sixteen of them.
So to your question -
if the leftmost bit is set to 1 it is USUALLY a negative number because that's the convention.
But since you are building the machine the choice is really up to you.
When Mother Nature gave us the binary system she left it up to us how to use it.
And that's why chiro mentioned signed vs unsigned arithmetic.
Is that any help?
old jim