Which of the following refers to the adjustment of profit from the start of trading to the end of the tax year?

The term that refers to the adjustment of profit from the start of trading to the end of the tax year is the actual basis. This concept is important in tax practice as it reflects the actual profits earned during a specific period, providing a true representation of the financial performance of a business within that tax year.

By using the actual basis, businesses can account for all income and expenses incurred during the tax year, allowing for a proper calculation of taxable profit. This is crucial for ensuring that the tax liability reflects the real economic activity of the business during that period.

Understanding the actual basis is fundamental for tax practitioners since it is utilized when preparing financial statements and calculating taxable income. It helps to ensure compliance with tax regulations, and facilitates accurate reporting to tax authorities.