One of the elements of financial statements is comprehensive income. As described in Statement of Financial Accounting Concepts No. 6, "Elements of Financial Statements," comprehensive income is equal to:

a. revenues minus expenses plus gains minus losses.

b. revenues minus expenses plus gains minus losses plus investments by owners minus distributions to owners.

c. revenues minus expenses plus gains minus losses plus investments by owners minus distributions to owners plus assets minus liabilities.

d. None of these answer choices are correct.

Comprehensive income is equal to revenues minus expenses plus gains minus losses plus investments by owners minus distributions to owners. So the correct option is b. revenues minus expenses plus gains minus losses plus investments by owners minus distributions to owners.

Explanation:

Comprehensive income is an important element of financial statements and represents the change in a company's net assets during a specific period of time. It includes not only revenues and expenses, but also gains, losses, investments by owners, and distributions to owners.

Therefore, it includes not only the net income, which is companies' revenues minus their expenses, but also other components of equity that are not classified as net income or loss. This includes items that are not realized and are a part of the Other Comprehensive Income, like unrealized gains or losses on securities or foreign exchange translation adjustments. Comprehensive income is therefore a broader measure than just the accounting profit or net income. It's designed to give a more inclusive view of how the company's operations and other factors affect its financial position.

Therefore the correct option is b. revenues minus expenses plus gains minus losses plus investments by owners minus distributions to owners.