Two's compliment is a popular form of representing numbers where half of the binary range is negative. It can be used for all arithmetic operations, not just addition and subtraction. Simply put, it "makes sense" to store numbers this way. A reason against it may be compression algorithms where you want to avoid using too many bits (e.g. zig-zag format and such).
For example, to multiply two 8-bit numbers, "5" and "-3", which are represented in binary as 101
and 11111101
, the computer may break this down into a problem of checking each bit in one factor, and adding up the other factor shifted by each bit set:
5<<0
+ 5<<2 (skipping 5<<1, because that bit is not set)
+ 5<<3
+ 5<<4
+ 5<<5
+ 5<<6
+ 5<<7
------
1265
1265
wraps to 241
in an 8-bit space, which is binary 11110001
, which is two's complement for -15
. On some older computers, multiplication took longer with how many bits of a number are set, likely due to the extra arithmetic required.
Division gets a bit more tricky and is the most expensive arithmetic operation, but the essence here is that two's compliments is a way to store numbers that is easy for computers to work with, as there is no extra logic required to test the sign bit before doing most operations.
In other words, "no", it is not only used for addition and subtraction.