Final answer:
Subaccounts appear under their parent accounts in the Chart of Accounts and are consolidated with their parent accounts on financial statements.
Step-by-step explanation:
In the Chart of Accounts, subaccounts appear under their parent accounts. They are indented and placed directly below the parent account. For example, if the parent account is 'Sales,' a subaccount such as 'Online Sales' would appear below it.
In financial statements, subaccounts are consolidated with their parent accounts. They are grouped together and their balances are combined with the parent account's balance. This provides a more detailed view of the financial performance and position of the business.