Final answer:
The correct answer to the question is option d: an increase in cash may result from an increase in liabilities. This occurs when a company borrows funds or issues bonds, leading to a rise in liabilities and an influx of cash, thus altering the company's balance sheet.
Step-by-step explanation:
The question at hand relates to the accounting equation and the factors that could result in an increase or decrease in a company's cash position. Within the framework of accounting, various transactions can impact a firm's financial statements, particularly the balance sheet, which captures the company's financial position at a given point in time. Notably, the relationship between cash, stockholders' equity, and liabilities is governed by the fundamental accounting equation: Assets = Liabilities + Stockholders' Equity.
A change in a company's cash balance can occur due to several factors, and these are reflected in the options provided in the question. Looking at the options, option d, an increase in cash may result from an increase in liabilities, is factually correct. When a firm increases its liabilities, which may occur through borrowing from a bank or issuing bonds, it often receives cash, thus reflecting an increase in the cash account on the asset side of the balance sheet.
Contrarily, option a, suggesting an increase in cash may result from a decrease in stockholders' equity, is less straightforward since a decrease in stockholders' equity could theoretically result from the company buying back its shares using cash at hand, which would decrease cash and equity. Option b, a decrease in cash resulting from an increase in liabilities, would be unusual as increasing liabilities tends to increase cash through loans or credit. Option c, an increase in cash from an increase in noncash assets, does not normally occur, as acquiring assets other than cash typically involves spending cash or incurring a liability. Therefore, the mention of the correct option in the final answer is that an increase in cash is most commonly due to an increase in liabilities (option d).