What is the origin of the idiom " with flying colors" and when to use it?

The idiom "with flying colors" is believed to have originated in the 16th century. At the time, flags were used to signal victory in battle. A flag that was flying high and undamaged was seen as a sign of victory, while a flag that was damaged or lowered was seen as a sign of defeat. The phrase "with flying colors" came to be used to describe a person or group who had achieved success or victory. It suggests that the person or group has performed exceptionally well and has surpassed expectations.