Sometimes, the terms CPU and microprocessor are considered to mean the same thing. This is not totally correct, because there are minute differences between the two. The best way to understand this is that all CPUs are microprocessors, however, all microprocessors are not necessarily CPUs. A microprocessor works on the assumption of a single-chip implementation in place of using an actual CPU. Therefore, a microprocessor can perform all functions that a CPU does, and in addition, it can also perform operations like addition, subtraction and comparison of numbers and data analysis.