Adjusting Journal Entries (AJEs) are accounting entries made to a company’s general ledger at the end of an accounting period to ensure that revenues and expenses are recorded in the period in which they occur. These entries are essential for complying with the matching principle and accrual accounting methods.
The matching principle is a fundamental accounting concept that dictates pairing revenues with the costs that were incurred to generate those revenues. This ensures that a company's financial statements reflect a more accurate picture of its financial performance.
