Which of the following is true about a main account in relation to sub-accounts?

The statement that main accounts summarize data from their sub-accounts is accurate because it reflects a fundamental aspect of accounting and financial reporting structures. In many accounting systems, including OneStream, a main account serves as a higher-level category that aggregates information from various sub-accounts. This allows for more organized reporting and analysis of financial data, enabling users to see a comprehensive view of transactions, budgets, and other financial activities at a higher level while still being able to drill down into specifics through sub-accounts.

This hierarchical organization is beneficial for maintaining clarity and structure within the Chart of Accounts (COA). Users benefit from this summarization as it provides a clearer picture of overall financial performance without losing the detailed insights that sub-accounts offer. The design facilitates detailed tracking of individual accounts while still supporting consolidated reporting that is crucial for decision-making and compliance.

In contrast, the other options do not accurately describe the relationship between main accounts and sub-accounts. Sub-accounts can indeed be established under main accounts, main accounts do not get automatically replaced by sub-accounts, and while main accounts are used for external reporting, they serve a broader purpose that includes internal analysis as well.