AICPA REG : CPA Regulation

  • Exam Code: REG
  • Exam Name: CPA Regulation
  • Updated: Sep 12, 2026   Q&As: 70 Questions and Answers

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AICPA REG Exam Syllabus Topics:
SectionWeightObjectives
Topic 1: Federal Taxation of Individuals15-25%- Gross income inclusions and exclusions
- Filing status and exemptions
- Pass-through entity income reporting
- Loss limitations and tax computation
- Adjustments, deductions, and credits
Topic 2: Federal Taxation of Entities28-38%- Book-tax differences and distributions
- C Corporations
- S Corporations
- Partnerships and LLCs
- Tax-exempt organizations
Topic 3: Federal Taxation of Property Transactions12-22%- Capital vs ordinary asset classification
- Recognition of gains and losses
- Basis and holding periods of assets
- Cost recovery, depreciation, and amortization
- Like-kind exchanges and involuntary conversions
Topic 4: Business Law10-20%- Debtor-creditor relationships and bankruptcy
- Agency relationships
- Contracts and UCC Article 2
- Secured transactions (UCC Article 9)
- Business structure legal framework
Topic 5: Ethics, Professional Responsibilities, and Federal Tax Procedures10-20%- Tax preparer penalties and due diligence
- IRS audit, appeals, and collection procedures
- Licensing and disciplinary systems
- Treasury Department Circular 230 rules
- Ethics and responsibilities in tax practice
AICPA CPA Regulation Sample Questions:
Question #1

On December 1, 1992, Michaels, a self-employed cash basis taxpayer, borrowed $100,000 to use in her
business. The loan was to be repaid on November 30, 1993. Michaels paid the entire interest of $12,000
on December 1, 1992. What amount of interest was deductible on Michaels' 1993 income tax return?

  • A. $1,000
  • B. $0
  • C. $11,000
  • D. $12,000
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

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Question #2

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.
In 1994, Joan received $3,500 as beneficiary of the death benefit, which was provided by her brother's
employer. Joan's brother did not have a nonforfeitable right to receive the money while living.

  • A. $1,000
  • B. $1,500
  • C. $10,000
  • D. $2,000
  • E. $1,300
  • F. $75,000
  • G. $1,250
  • H. $55,000
  • I. $25,000
  • J. $900
  • K. $3,000
  • L. $0
  • M. $50,000
  • N. $2,500
  • O. $500
Reveal Solution  Discussion  0

Correct Answer: L  🗳️

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Question #3

In the current year Jensen had the following items:

What is Jensen's AGI for the current year?

  • A. $44,000
  • B. $59,000
  • C. $84,000
  • D. $62,000
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #4

For a cash basis taxpayer, gain or loss on a year-end sale of listed stock arises on the:

  • A. Trade date.
  • B. Date of delivery of stock certificate.
  • C. Date of receipt of cash proceeds.
  • D. Settlement date.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

Which of the following statements is the best definition of real property?

  • A. Real property is land and everything permanently attached to it.
  • B. Real property is only land.
  • C. Real property is land and intangible property in realized form.
  • D. Real property is all tangible property including land.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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