The document describes an 8051-based digital clock application that uses timers and interrupts. It configures Timer 0 to generate interrupts every 50ms by overflowing every 46080 cycles. Timer 1 is used to generate a 19200 baud rate for a serial port. On each Timer 0 interrupt, the clock display is updated. By generating interrupts every 50ms and counting 20 of them for 1 second, the timer configuration provides an approximate 1 second timer without exceeding the 8051's 65536 cycle limit.