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AICPA REG exam : CPA Regulation

REG Exam Questions
  • Exam Code: REG
  • Exam Name: CPA Regulation
  • Updated: Sep 12, 2026
  • Q & A: 70 Questions and Answers
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AICPA REG exam demo

AICPA REG Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: Business Law10–20%- Business structure law
  • 1. UCC principles
    • 2. Secured transactions basics
      - Contracts and agency
      • 1. Agency relationships and liability
        • 2. Contract formation and enforceability
          Topic 2: Federal Taxation of Property Transactions12–22%- Property transactions
          • 1. Basis computation
            • 2. Gains and losses recognition
              Topic 3: Federal Taxation of Individuals15–25%- Individual income taxation
              • 1. Deductions and credits
                • 2. Gross income and exclusions
                  Topic 4: Federal Taxation of Entities18–28%- Business entity taxation
                  • 1. S corporations taxation
                    • 2. Partnership taxation
                      • 3. C 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. Ethical decision-making frameworks
                              • 2. Professional responsibilities and standards

                                AICPA CPA Regulation Sample Questions:

                                Question #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. $15,000
                                • C. $5,000
                                • D. $10,000
                                Reveal Solution  Discussion  0

                                Correct Answer: D  🗳️

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                                Question #2

                                Among which of the following related parties are losses from sales and exchanges not recognized for tax
                                purposes?

                                • A. Ancestors, lineal descendants, and all in-laws.
                                • B. Grandfather and granddaughter.
                                • C. Brother-in-law and sister-in-law.
                                • D. Father-in-law and son-in-law.
                                Reveal Solution  Discussion  0

                                Correct Answer: B  🗳️

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                                Question #3

                                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.
                                During 1994, the Moores received a $2,500 federal tax refund and a $1,250 state tax refund for 1993
                                overpayments. In 1993, the Moores were not subject to the alternative minimum tax and were not entitled
                                to any credit against income tax. The Moores' 1993 adjusted gross income was $80,000 and itemized
                                deductions were $1,450 in excess of the standard deduction. The state tax deduction for 1993 was
                                $ 2,000.

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

                                Correct Answer: O  🗳️

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                                Question #4

                                Under the uniform capitalization rules applicable to taxpayers with property acquired for resale, which of
                                the following costs should be capitalized with respect to inventory if no exceptions have been met?

                                • A. Option B
                                • B. Option D
                                • C. Option A
                                • D. Option C
                                Reveal Solution  Discussion  0

                                Correct Answer: C  🗳️

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                                Question #5

                                In the current year Jensen had the following items:

                                What is Jensen's AGI for the current year?

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

                                Correct Answer: A  🗳️

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