Which accounts are categorized as rolling up to root accounts?

Child accounts are categorized as rolling up to root accounts because they represent the detailed components or subdivisions of a broader financial structure. In a hierarchical account system, root accounts serve as the highest level accounts that summarize financial data. Child accounts are created under root accounts to capture specific transactions or expenditures, which are then aggregated into the root account totals. This structure allows for detailed tracking of financial performance and enables users to analyze data at different levels, making it essential for reporting and financial analysis.

In the context of financial reporting, the way accounts are organized into parent-child relationships is critical for understanding how data consolidates at higher levels. Root accounts typically do not have parent accounts, while child accounts depend on these root accounts for their placement in financial reports.