AICPA REG - CPA Regulation
- Exam Code: REG
- Exam Name: CPA Regulation
- Updated: Jul 14, 2026
- Q & A: 70 Questions and Answers
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Federal Taxation of Property Transactions | 12–22% | - Property transactions
|
| Topic 2: Business Law | 10–20% | - Contracts and agency
|
| Topic 3: Ethics, Professional Responsibilities, and Federal Tax Procedures | 15–25% | - Ethics and professional conduct
|
| Topic 4: Federal Taxation of Entities | 18–28% | - Business entity taxation
|
| Topic 5: Federal Taxation of Individuals | 15–25% | - Individual income taxation
|
1. Conner purchased 300 shares of Zinco stock for $30,000 in 1980. On May 23, 1994, Conner sold all the
stock to his daughter Alice for $20,000, its then fair market value. Conner realized no other gain or loss
during 1994. On July 26, 1994, Alice sold the 300 shares of Zinco for $25,000.
What amount of the loss from the sale of Zinco stock can Conner deduct in 1994?
A) $10,000
B) $0
C) $5,000
D) $3,000
2. Rich is a cash basis self-employed air-conditioning repairman with 1993 gross business receipts of
$ 20,000. Rich's cash disbursements were as follows:
What amount should Rich report as net self-employment income?
A) $14,900
B) $14,100
C) $13,900
D) $15,100
3. Which one of the following will result in an accruable expense for an accrual-basis taxpayer?
A) A signed contract for repair work to be done and the work is to be completed at a later date.
B) A repair completed prior to year end but not invoiced.
C) A repair completed prior to year end and paid upon completion.
D) An invoice dated prior to year end but the repair completed after year end.
4. In which of the following situations may taxpayers file as married filing jointly?
A) Taxpayers who were divorced during the year.
B) Taxpayers who were married but lived apart during the year.
C) Taxpayers who were legally separated but lived together for the entire year.
D) Taxpayers who were married but lived under a legal separation agreement at the end of the year.
5. Parker, whose spouse died during the preceding year, has not remarried. Parker maintains a home for a
dependent child. What is Parker's most advantageous filing status?
A) Married filing separately.
B) Head of household.
C) Qualifying widow(er) with dependent child.
D) Single.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: C |
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