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Instant Download AICPA : REG Questions & Answers as PDF & Test Engine

REG
  • Exam Code: REG
  • Exam Name: CPA Regulation
  • Updated: Aug 26, 2026
  • No. of Questions: 70 Questions and Answers
  • Download Limit: Unlimited
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AICPA REG Exam Syllabus Topics:

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

AICPA CPA Regulation Sample Questions:

Question 1

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

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


Question 2

In the current year Jensen had the following items:

What is Jensen's AGI for the current year?

A. $84,000
B. $44,000
C. $62,000
D. $59,000


Question 3

Don Wolf became a general partner in Gata Associates on January 1, 1989, with a 5% interest in Gata's
profits, losses, and capital. Gata is a distributor of auto parts. Wolf does not materially participate in the
partnership business. For the year ended December 31, 1989, Gata had an operating loss of $100,000.
In addition, Gata earned interest of $20,000 on a temporary investment. Gata has kept the principal
temporarily invested while awaiting delivery of equipment that is presently on order. The principal will be
used to pay for this equipment. Wolf's passive loss for 1989 is:

A. $4,000
B. $0
C. $5,000
D. $6,000


Question 4

Doris and Lydia are equal partners in the capital and profits of Agee & Nolan, but are otherwise unrelated.
The following information pertains to 300 shares of Mast Corp. stock sold by Lydia to Agee & Nolan:

The amount of long-term capital loss that Lydia realized in 1988 on the sale of this stock was:

A. $3,000
B. $0
C. $5,000
D. $2,500


Question 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 $8,400 in gross receipts from their rental property during 1994. The expenses for
the residential rental property were:

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


Solutions:

Question 1
Answer: D
Question 2
Answer: D
Question 3
Answer: C
Question 4
Answer: C
Question 5
Answer: L

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