A hairdresser includes proceeds of the sale of salon equipment in the business's income statement - HSC - SSCE Business Studies - Question 14 - 2020 - Paper 1

In this scenario, the inclusion of proceeds from the sale of salon equipment implies that the income statement may not accurately reflect the ongoing operational performance of the hairdressing business. This situation reinforces the concept of Normalised earnings (Option C). Normalised earnings adjust for irregular items to present a clearer picture of a company's profitability and ongoing revenue generation. Proceeds from asset sales are not derived from the core business activities but represent one-time events, which can distort the financial statements if not correctly accounted for.