Which statement accurately describes 'bit 1' in computing?

In computing, a 'bit' is the most fundamental unit of information, representing a binary state. Specifically, 'bit 1' indicates that the value is set to 'on' or true. This is in contrast to 'bit 0', which represents 'off' or false. When it comes to binary systems, 'on' corresponds to a higher voltage level or an active state in various electrical circuits, while 'off' corresponds to a lower voltage or inactive state.

Understanding this distinction is vital, as bits are the building blocks of data representation in computing, allowing for more complex structures like bytes, which are used to encode everything from numerical values to characters in text. The assertion that 'bit 1' represents 'on' is fundamental to grasping how binary code functions, making it clear why this statement accurately describes the role of 'bit 1' in computing.