According to the diminishing balance method depreciation is written off over the expected useful life of the asset. - True or False? Under a perpetual inventory system, the cost of goods sold is recorded as each transaction takes place. When goods are sold for cash a column in the cash receipts journal is added to collect the data regarding the cost price. - True or False? The understatement of the closing inventory amount with R40 000 will result in the cost of sales amount being understated by R40 000 in the statement of profit or loss and other comprehensive income - True or False?