Definition & Meaning of "with flying colours"

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

The idiom "with flying colours" 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. It is often used to describe someone who has done something well, such as passing an exam or winning a competition. The phrase is also used to describe something that has been done well, such as a product launch or a new business venture.