AICPA REG Questions & Answers - in .pdf
- Vendor: AICPA
- Exam Code: REG
- Exam Name: CPA Regulation
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- Vendor: AICPA
- Exam Code: REG
- Exam Name: CPA Regulation
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AICPA REG Exam Overview:
| Certification Vendor: | AICPA |
| Exam Name: | Regulation |
| Exam Number: | REG |
| Passing Score: | 75 (scaled score 0-99) |
| Available Languages: | English |
| Real Exam Qty: | 72 MCQs + 8 TBSs |
| Exam Format: | Multiple Choice Questions (MCQ), Task-Based Simulations (TBS) |
| Exam Duration: | 240 minutes |
| Related Certifications: | AUD FAR BAR ISC TCP |
| Certificate Validity Period: | 30 months from passing first section |
| Exam Price: | $262.64 USD per section (varies by jurisdiction) |
| Recommended Training: | AICPA CPA Exam Blueprints & Study Resources NASBA Candidate Bulletin |
| Exam Registration: | NASBA CPA Exam Services AICPA CPA Exam Registration |
| Sample Questions: | AICPA REG Sample Questions |
| Exam Way: | Computer-based testing at Prometric test centers; online proctoring not available |
| Pre Condition: | Bachelor's degree + 120–150 semester credits (varies by state board); minimum accounting/business coursework required |
| Official Syllabus URL: | https://us.aicpa.org/becomeacpa/cpaexam/exam-content-blueprints |
AICPA REG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Federal Taxation of Property Transactions | 12-22% | - Recognition of gains and losses - Like-kind exchanges and involuntary conversions - Basis and holding periods of assets - Capital vs ordinary asset classification - Cost recovery, depreciation, and amortization |
| Topic 2: Federal Taxation of Entities | 28-38% | - C Corporations - Book-tax differences and distributions - Partnerships and LLCs - Tax-exempt organizations - S Corporations |
| Topic 3: Business Law | 10-20% | - Agency relationships - Debtor-creditor relationships and bankruptcy - Secured transactions (UCC Article 9) - Contracts and UCC Article 2 - Business structure legal framework |
| Topic 4: Ethics, Professional Responsibilities, and Federal Tax Procedures | 10-20% | - Treasury Department Circular 230 rules - IRS audit, appeals, and collection procedures - Tax preparer penalties and due diligence - Ethics and responsibilities in tax practice - Licensing and disciplinary systems |
| Topic 5: Federal Taxation of Individuals | 15-25% | - Pass-through entity income reporting - Loss limitations and tax computation - Adjustments, deductions, and credits - Filing status and exemptions - Gross income inclusions and exclusions |
AICPA CPA Regulation Sample Questions:
1. Farr made a gift of stock to her child, Pat. At the date of gift, Farr's stock basis was $10,000 and the
stock's fair market value was $15,000. No gift taxes were paid. What is Pat's basis in the stock for
computing gain?
A) $0
B) $5,000
C) $10,000
D) $15,000
2. Baum, an unmarried optometrist and sole proprietor of Optics, buys and maintains a supply of eyeglasses
and frames to sell in the ordinary course of business. In 1999, Optics had $350,000 in gross business
receipts and its year-end inventory was not subject to the uniform capitalization rules. Baum's 1999
adjusted gross income was $90,000 and Baum qualified to itemize deductions. During 1999, Baum
recorded the following information:
Business expenses:
What amount should Baum report as 1999 net earnings from self-employment?
A) $273,000
B) $281,750
C) $243,250
D) $252,000
3. Rich is a cash basis self-employed air-conditioning repairman with 1993 gross business receipts of
$ 20,000. Rich's cash disbursements were as follows:
What amount should Rich report as net self-employment income?
A) $14,900
B) $14,100
C) $13,900
D) $15,100
4. Mosh, a sole proprietor, uses the cash basis of accounting. At the beginning of the current year, accounts
receivable were $25,000. During the year, Mosh collected $100,000 from customers. At the end of the
year, accounts receivable were $15,000. What was Mosh's gross taxable income for the current year?
A) $90,000
B) $75,000
C) $100,000
D) $110,000
5. Tom and Joan Moore, both CPAs, filed a joint 1994 federal income tax return showing $70,000 in taxable
income. During 1994, Tom's daughter Laura, age 16, resided with Tom. Laura had no income of her own
and was Tom's dependent.
Determine the amount of income or loss, if any that should be included on page one of the Moores' 1994
Form 1040.
The Moores received a $500 security deposit on their rental property in 1994. They are required to return
the amount to the tenant.
A) $0
B) $25,000
C) $3,000
D) $75,000
E) $2,000
F) $1,300
G) $900
H) $55,000
I) $50,000
J) $1,500
K) $1,250
L) $1,000
M) $10,000
N) $2,500
O) $500
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: A |
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