CPA-Regulation Exam Questions & Answers
CPA Regulation • AICPA
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About CPA-Regulation Exam
The CPA Regulation (REG) exam is a critical component of the Certified Public Accountant certification administered by the American Institute of CPAs (AICPA). This comprehensive examination tests candidates' knowledge of federal taxation, business law, and ethics—essential competencies for professional accounting practice. The REG exam covers income taxation for individuals and businesses, entity selection, tax compliance and planning, federal tax procedures, and professional responsibilities. Aspiring CPAs must demonstrate mastery of these complex topics to advance their careers in accounting, finance, and tax advisory roles. Candidates preparing for this challenging exam require strategic study approaches and access to high-quality learning materials.
Updated exam dumps and comprehensive practice tests are invaluable resources for CPA Regulation candidates seeking to maximize their exam performance. These study materials provide realistic exam simulations, allowing candidates to familiarize themselves with question formats, time management requirements, and content emphasis areas. Practice tests help identify knowledge gaps in taxation and business law concepts while building confidence before the actual exam. Using current exam dumps aligned with AICPA's latest standards ensures candidates study relevant material and understand recent regulatory changes. Combined with formal CPA review courses, these practice resources significantly enhance pass rates and help candidates achieve their certification goals efficiently.
Exam Topics & Objectives
4-Week Study Plan for CPA-Regulation
Week 1: Ethics, Professional Responsibilities, and Business Law Foundations
- Study AICPA Code of Professional Conduct and ethical requirements for CPAs
- Review Standards for Tax Services and responsibilities in tax practice
- Learn federal tax procedures including statute of limitations, penalties, and interest calculations
- Study Business Law fundamentals: contracts, partnerships, and sole proprietorships
- Complete practice questions on Area I (10-20%) and Area II (10-20%)
- Take diagnostic quiz covering ethics and business law topics
Week 2: Property Transactions and Individual Taxation Fundamentals
- Master basis calculations for property including adjusted basis and cost recovery
- Study gain and loss recognition on property sales and exchanges
- Learn Section 1031 like-kind exchanges and installment sales
- Review Individual income sources: wages, interest, dividends, capital gains
- Study standard deduction and itemized deductions for individuals
- Learn filing requirements and gross income inclusions for individuals
- Complete practice questions on Area III (12-22%)
- Take practice exam covering Weeks 1-2 content
Week 3: Individual Taxation Planning and Entity Taxation Fundamentals
- Study individual tax credits: child tax credit, education credits, earned income credit
- Master tax planning strategies for individuals including timing strategies
- Review estimated tax payments and withholding requirements
- Study C Corporation taxation: corporate income tax, dividends received deduction
- Learn S Corporation requirements, shareholder basis, and pass-through taxation
- Study Partnership taxation: partnership formation, basis adjustments, distributions
- Complete practice questions on Area IV (15-25%)
- Review Area V (28-38%) foundational entity concepts
Week 4: Entity Taxation Strategies and Comprehensive Review
- Master partnership and S Corporation distributions and liquidations
- Study consolidated returns and multi-entity tax planning
- Learn entity selection strategies: sole proprietorship vs. partnership vs. S Corp vs. C Corp
- Review accumulated earnings tax and personal holding company tax
- Study tax preparation requirements and filing deadlines for all entity types
- Complete comprehensive practice questions on Area V (28-38%)
- Take full-length practice exam covering all five areas
- Review weak areas and complete final targeted practice questions
- Study time management strategies for exam day
Sample CPA-Regulation Questions
Practice with real exam-style questions. Reveal answers to verify your knowledge.
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.
Which payment(s) is(are) included in a recipient's gross income?
I . Payment to a graduate assistant for a part-time teaching assignment at a university. Teaching is not a requirement toward obtaining the degree.
II . A grant to a Ph.D. candidate for his participation in a university-sponsored research project for the benefit of the university.
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:
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 1992, Joan received an acre of land as an inter-vivos gift from her grandfather. At the time of the gift, the land had a fair market value of $50,000. The grandfather's adjusted basis was $60,000. Joan sold the land in 1994 to an unrelated third party for $56,000.
Hall, a divorced person and custodian of her 12-year old child, filed her 1990 federal income tax return as head of a household. She submitted the following information to the CPA who prepared her 1990 return:
* The divorce agreement, executed in 1983, provides for Hall to receive $3,000 per month, of which $600 is designated as child support. After the child reaches 18, the monthly payments are to be reduced to $2,400 and are to continue until remarriage or death. However, for the year 1990, Hall received a total of only $5,000 from her former husband. Hall paid an attorney $2,000 in 1990 in a suit to collect the alimony owed.
* In June 1990, Hall's mother gifted her 100 shares of a listed stock. The donor's basis for this stock, which she bought in 1970, was $4,000, and market value on the date of the gift was $3,000. Hall sold this stock in July 1990 for $3,500. The donor paid no gift tax.
* During 1990, Hall spent a total of $1,000 for state lottery tickets. Her lottery winnings in 1990 totaled $200.
* Hall earned a salary of $25,000 in 1990. Hall was not covered by any type of retirement plan, but contributed $2,000 to an IRA in 1990.
* In 1990, Hall sold an antique that she bought in 1980 to display in her home. Hall paid $800 for the antique and sold it for $1,400, using the proceeds to pay a court-ordered judgment.
* Hall paid the following expenses in 1990 pertaining to the home that she owns: realty taxes, $3,400; mortgage interest, $7,000; casualty insurance, $490; assessment by city for construction of a sewer system, $910; interest of $1,000 on a personal, unsecured bank loan, the proceeds of which were used for home improvements. Hall does not rent out any portion of the home.
What amount should be reported in Hall's 1990 return as alimony income?
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