To understand how a computer functions you must understand the information processing cycle.
What is the information processing cycle? The sequence of events in processing information, which includes (1) input, (2) processing, (3) storage and (4) output. These processes work together and repeat over and over.
Input—entering data into the computer.
Processing—performing operations on the data.
Storage—saving data, programs, or output for future use.
Output—presenting the results.