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AICPA REG Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Business Law | 15-25% | - Agency, contracts, and debtor-creditor relationships - Legal duties and responsibilities in business transactions - Business structures and federal business regulations |
| Federal Taxation of Property Transactions | 5-15% | - Gains and losses on disposition of assets - Basis, cost recovery (depreciation and amortization) |
| Federal Taxation of Individuals | 22-32% | - Adjustments, deductions, exemptions and credits - Tax filing requirements and procedures - Individual taxable income and tax compliance |
| Ethics, Professional Responsibilities and Federal Tax Procedures | 10-20% | - Licensing and disciplinary systems for CPA practice - Federal tax procedures, disclosures, penalties, and appeals - Ethics and responsibilities in tax practice (Treasury Department Circular 230) |
| Federal Taxation of Entities | 23-33% | - Tax compliance for corporations, partnerships, LLCs, and S corporations - Entity-level tax planning and reporting requirements |
AICPA CPA Regulation Sample Questions:
1. 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) $500
D) $4,000
2. 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.
A) $1,500
B) $55,000
C) $0
D) $50,000
E) $2,500
F) $25,000
G) $1,000
H) $10,000
I) $75,000
J) $1,250
K) $2,000
L) $3,000
M) $1,300
N) $500
O) $900
3. In the current year Jensen had the following items:
What is Jensen's AGI for the current year?
A) $62,000
B) $44,000
C) $59,000
D) $84,000
4. Under the uniform capitalization rules applicable to property acquired for resale, which of the following
costs should be capitalized with respect to inventory if no exceptions are met?
A) Option C
B) Option D
C) Option A
D) Option B
5. On December 1, 1997, Krest, a self-employed cash basis taxpayer, borrowed $200,000 to use in her
business. The loan was to be repaid on November 30, 1998. Krest paid the entire interest amount of
$ 24,000 on December 1, 1997. What amount of interest was deductible on Krest's 1997 income tax return?
A) $0
B) $22,000
C) $2,000
D) $24,000
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: B | Question # 5 Answer: C |




