As a volcano erupts, emptying the magma chamber, the surrounding rock will collapse into it. If a large amount of magma is erupted, causing the chamber to reduce considerably in volume, then this can result in a depression at the surface called a caldera.
Accrued Expense. Accrued expense is expense which has been incurred but not yet paid. Expense must be recorded in the accounting period in which it is incurred. Therefore, accrued expense must be recognized in the accounting period in which it occurs rather than in the following period in which it will be paid.
A prepaid expense is an asset on the balance sheet. Due to accounting principles, expenses are often accrued on the balance sheet and expensed in a later period. Markets. Accrued interest has two meanings. In accounting, it is interest that has been earned, but the time for payment has not yet occurred.