Note: Visitors, , the LaTeX system seems to not work perfectly here, so images are now used here instead, to help illustrate the process. Further editing may still be needed.
How does long division really work?
For best understanding, a person should understand the meaning of fractions and should understand signed numbers, but we will not worry too much about those right now. How about an example, ?
We usually do not know our multiples of 15, so we may like to know what factors of 15 to use to subtract from the 850; but how may we decide what factors?
Try expression the dividend and divisor in expanded form. (I’ll show that here but without use of exponents):
latex$ 8×100+5×10+0×1\div 1×10+5×1$ and please excuse the use of ‘x’ as the multiplication symbol. We can arrange into the “long division” expression form:

Long Division Expanded Form Before Start
We want to ask, what is the biggest amount of times that we can subtract the divisor, based upon the first term of the dividend, which is 8×100? We focus on the “1×10″ and on the “8×100″, for now. It either goes in 0 times or something between 1 and 9. Just figure, 8×100 divided by 1×10 is 8×10. Good! Now what do we do?
Report the first part of the division, perform the multiplication, and perform the first subtraction based on this:

first partial division, multiplication, resulting subtraction
(Notice this is a negative number, -350)
We will now bring down the next term and repeat the process:

finished basic algorithm, remainder showing
How many times is 1×10 contained in -35×10 ? Answer is -35. -350/10=-35. Going through the process, the subtraction gives us +175. For our purposes, we are almost done. +175 seems like the REMAINDER. We really had to let in negative numbers.
Notice again, the remainder means, since the divisor was 15, the fraction latex$ \fract{175}{15}$.
The quotient then can be initially shown as 8×10 – 35 + latex$\frac{175}{15}$. The fraction simplifies to (yes, let me skip showing the steps here) 11 latex$\frac{2}{3}$,
So the quotient then is 80 – 35 + 11latex$\frac{2}{3}$ = 56 latex$\frac{2}{3}$
Again, as a reminder, some of this may be better understood if a student is well introduced to adding and subtracting of signed numbers, not very difficult to learn, but often enough not taught in the lower elementary school levels.