"When a company buys inventory for cash, total assets do not change. However, when it buys inventory on open account, total assets increase." Explain. O A. This is false. When a company buys inventory for cash, the cost of the asset reduces the net value of the company. OB. This is false. It doesn't matter whether the asset was paid with cash or whether it buys it on an open account. OC. This is true. When a company buys inventory for cash, the asset is traded for the liabilities. Thus, the balance sheet remains in balance. OD. This is true. When a company buys inventory for cash, one asset is traded for another, and neither total assets nor total liabilities change. Thus, the balance sheet equation stays in balance. When a company buys inventory on credit, both inventory and accounts payable increase. Thus, both total assets and total liabilities increase by the same amount, again keeping the balance sheet equation in balance