S - Sign Flag : This flag is set, when the result of any computation is negative.

Z - Zero Flag: This flag is set, if the result of the computation or comparison performed by the previous instruction is zero.

P - Parity Flag: This flag is set to 1, if the lower byte of the result contains even number of 1's.

C - Carry Flag: This flag is set, when there is a carry out of MSB in case of addition or a borrow in case of subtraction.

T - Tarp Flag: If this flag is set, the processor enters the single step execution mode.

I - Interrupt Flag: If this flag is set, the maskable interrupt are recognized by the CPU, otherwise they are ignored.

D - Direction Flag: This is used by string manipulation instructions. If this flag bit is ‘0', the string is processed beginning from the lowest address to the highest address, i.e., auto incrementing mode. Otherwise, the string is processed from the highest address towards the lowest address, i.e., auto incrementing mode.

AC -Auxilary Carry Flag: This is set, if there is a carry from the lowest nibble, i.e, bit three during addition, or borrow for the lowest nibble, i.e, bit three, during subtraction.