What are the ten elements of financial statements according to SFAC #6?

The correct choice identifies the ten elements of financial statements as outlined in Statement of Financial Accounting Concepts (SFAC) No. 6, which provides a framework for understanding and preparing financial statements. The elements that make up financial statements include assets, liabilities, equity, revenues, expenses, gains, losses, investments by owners, distributions to owners, and comprehensive income.

In this context, the inclusion of comprehensive income, revenues, expenses, and gains captures key components critical to portraying a company’s financial performance and position. Comprehensive income reflects all changes in equity that do not involve transactions with owners, thus providing a holistic view of financial results. Revenues and expenses are fundamental to the income statement, detailing the company's operational performance, while gains are emphasized because they represent increases in equity from peripheral or incidental transactions.

A strong understanding of these elements is crucial for analyzing financial statements, ensuring compliance with accounting standards, and effectively communicating the financial condition and performance of an entity. The selection of these four elements aligns with the broader categories outlined in SFAC #6, highlighting their importance in financial reporting.