Final answer:
An increase in common stock is a source of cash for a company because the company receives cash when issuing new shares of stock.
Answer is option c. increase in common stock.
Step-by-step explanation:
The question asks which of the following is a source of cash:
a) increase in accounts receivable
b) decrease in long-term debt
c) increase in common stock
d) decrease in retained earnings
e) none of the above
The correct option in this list of possible sources of cash for a company is an increase in common stock. When a company issues more common stock, it receives cash in exchange, thus increasing its cash reserves. Therefore, an increase in common stock is a source of cash.