Final answer:
AJE appears in the Adjusting Entries phase of the accounting cycle, at the end of the accounting period, and are used to ensure that the financial statements accurately reflect the company's financial position.
Step-by-step explanation:
In the accounting cycle, AJE stands for Adjusting Journal Entries, which appear in the Adjusting Entries phase of the cycle. Adjusting Journal Entries are made at the end of the accounting period to ensure that the financial statements accurately reflect the company's financial position and performance.
These entries are used to recognize revenues and expenses that have been earned or incurred but have not yet been recorded. For example, if a company receives payment from a customer for services that will be provided in the future, an Adjusting Journal Entry would be made to recognize the unearned revenue.
Adjusting Journal Entries is necessary because some transactions are not recorded daily but need to be accounted for in the correct period. By making these adjustments, the financial statements provide a more accurate representation of the company's financial situation.