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Updated: Jul 28, 2026
No. of Questions: 70 Questions & Answers with Testing Engine
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| Exam Name: | CPA Regulation (REG) Exam |
| Exam Number: | REG |
| Real Exam Qty: | 74 total (66 MCQs + 8 TBSs) |
| Exam Price: | USD 250–350 (varies by jurisdiction and fees) |
| Exam Duration: | 240 minutes |
| Exam Format: | Multiple Choice Questions (MCQ), Task-Based Simulations (TBS) |
| Related Certifications: | CPA Auditing and Attestation (AUD) CPA Financial Accounting and Reporting (FAR) CPA Business Environment and Concepts (BEC legacy) CPA Business Analysis and Reporting (BAR) CPA Information Systems and Controls (ISC) CPA Tax Compliance and Planning (TCP) |
| Available Languages: | English |
| Passing Score: | 75 (on a 0–99 scale) |
| Certificate Validity Period: | CPA exam credit valid for 18 months (rolling window); CPA license does not expire once issued |
| Recommended Training: | NASBA Candidate Resources AICPA CPA Exam Blueprints & Prep Resources |
| Exam Registration: | CPA Central Registration Portal NASBA CPA Exam Services |
| Sample Questions: | AICPA REG Sample Questions |
| Exam Way: | Computer-based testing at authorized Prometric testing centers |
| Pre Condition: | No formal prerequisites for taking the CPA exam, but most jurisdictions require education (typically 120–150 semester hours) and specific accounting coursework for licensure. |
| Official Syllabus URL: | AICPA CPA Exam Overview |
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Business Law | 10–20% | - Contracts and agency
|
| Topic 2: Ethics, Professional Responsibilities, and Federal Tax Procedures | 15–25% | - Federal tax procedures
|
| Topic 3: Federal Taxation of Individuals | 15–25% | - Individual income taxation
|
| Topic 4: Federal Taxation of Entities | 18–28% | - Business entity taxation
|
| Topic 5: Federal Taxation of Property Transactions | 12–22% | - Property transactions
|
1. 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) $13,900
C) $15,100
D) $14,100
2. 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 C
D) Option A
3. Allen owns 100 shares of Prime Corp., a publicly-traded company, which Allen purchased on January 1,
2 001, for $10,000. On January 1, 2003, Prime declared a 2-for-1 stock split when the fair market value
(FMV) of the stock was $120 per share. Immediately following the split, the FMV of Prime stock was $62
per share. On February 1, 2003, Allen had his broker specifically sell the 100 shares of Prime stock
received in the split when the FMV of the stock was $65 per share. What amount should Allen recognize
as long-term capital gain income on his Form 1040, U.S. Individual Income Tax Return, for 2003?
A) $300
B) $750
C) $2,000
D) $1,500
4. Freeman, a single individual, reported the following income in the current year:
Guaranteed payment from services rendered to a partnership $50,000
Ordinary income from a S corporation $20,000
What amount of Freeman's income is subject to self-employment tax?
A) $70,000
B) $20,000
C) $0
D) $50,000
5. John and Mary were divorced in 1991. The divorce decree provides that John pay alimony of $10,000 per
year, to be reduced by 20% on their child's 18th birthday. During 1992, John paid $7,000 directly to Mary
and $3,000 to Spring College for Mary's tuition. What amount of these payments should be reported as
income in Mary's 1992 income tax return?
A) $5,600
B) $10,000
C) $8,600
D) $8,000
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: D |
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