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.
Accrued liabilities. Accrued liabilities are liabilities that reflect expenses on the income statement that have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received.