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.
What are 'Accruals'. Accruals are earned revenues and incurred expenses that have an overall impact on an income statement. They also affect the balance sheet, which represents liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense.