AICPA REG Dumps : CPA Regulation

REG real exams

Exam Code: REG

Exam Name: CPA Regulation

Updated: Jul 22, 2026

Q & A: 70 Questions and Answers

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AICPA REG Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Business Law10–20%- Business structure law
  • 1. Secured transactions basics
    • 2. UCC principles
      - Contracts and agency
      • 1. Agency relationships and liability
        • 2. Contract formation and enforceability
          Topic 2: Federal Taxation of Individuals15–25%- Individual income taxation
          • 1. Deductions and credits
            • 2. Gross income and exclusions
              Topic 3: Federal Taxation of Property Transactions12–22%- Property transactions
              • 1. Basis computation
                • 2. Gains and losses recognition
                  Topic 4: Federal Taxation of Entities18–28%- Business entity taxation
                  • 1. Partnership taxation
                    • 2. C corporations taxation
                      • 3. S corporations taxation
                        Topic 5: Ethics, Professional Responsibilities, and Federal Tax Procedures15–25%- Federal tax procedures
                        • 1. Tax return filing, penalties, and statute of limitations
                          • 2. IRS authority and procedures
                            - Ethics and professional conduct
                            • 1. Professional responsibilities and standards
                              • 2. Ethical decision-making frameworks

                                AICPA CPA Regulation Sample Questions:

                                1. During 2001, Adler had the following cash receipts:

                                What is the total amount that must be included in gross income on Adler's 2001 income tax return?

                                A) $19,900
                                B) $18,000
                                C) $18,400
                                D) $19,500


                                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) $252,000
                                B) $243,250
                                C) $273,000
                                D) $281,750


                                3. Adams owns a second residence that is used for both personal and rental purposes. During 2001, Adams
                                used the second residence for 50 days and rented the residence for 200 days. Which of the following
                                statements is correct?

                                A) Depreciation may not be deducted on the property under any circumstances.
                                B) Utilities and maintenance on the property must be divided between personal and rental use.
                                C) A rental loss may be deducted if rental-related expenses exceed rental income.
                                D) All mortgage interest and taxes on the property will be deducted to determine the property's net income
                                or loss.


                                4. In 19X4, Smith, a divorced person, provided over one half the support for his widowed mother, Ruth, and
                                his son, Clay, both of whom are U.S. citizens. During 19X4, Ruth did not live with Smith. She received
                                $ 9,000 in Social Security benefits. Clay, a 25 year-old full-time graduate student, and his wife lived with
                                Smith. Clay had no income but filed a joint return for 19X4, owing an additional $500 in taxes on his wife's
                                income. How many exemptions was Smith entitled to claim on his 19X4 tax return?

                                A) 2
                                B) 4
                                C) 3
                                D) 1


                                5. During 1993 Kay received interest income as follows:
                                On U.S. Treasury certificates $4,000
                                On refund of 1991 federal income tax 500
                                The total amount of interest subject to tax in Kay's 1993 tax return is:

                                A) $0
                                B) $4,500
                                C) $4,000
                                D) $500


                                Solutions:

                                Question # 1
                                Answer: D
                                Question # 2
                                Answer: D
                                Question # 3
                                Answer: B
                                Question # 4
                                Answer: A
                                Question # 5
                                Answer: B

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