Updated: Aug 01, 2026
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| Exam Name: | CPA Regulation (REG) Exam |
| Exam Number: | REG |
| Exam Format: | Multiple Choice Questions (MCQ), Task-Based Simulations (TBS) |
| Exam Duration: | 240 minutes |
| Certificate Validity Period: | CPA exam credit valid for 18 months (rolling window); CPA license does not expire once issued |
| Available Languages: | English |
| Passing Score: | 75 (on a 0–99 scale) |
| Exam Price: | USD 250–350 (varies by jurisdiction and fees) |
| Real Exam Qty: | 74 total (66 MCQs + 8 TBSs) |
| 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) |
| 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: Federal Taxation of Entities | 18–28% | - Business entity taxation
|
| Topic 2: Federal Taxation of Property Transactions | 12–22% | - Property transactions
|
| Topic 3: Federal Taxation of Individuals | 15–25% | - Individual income taxation
|
| Topic 4: Business Law | 10–20% | - Contracts and agency
|
| Topic 5: Ethics, Professional Responsibilities, and Federal Tax Procedures | 15–25% | - Federal tax procedures
|
1. Which of the following statements is the best definition of real property?
A) Real property is land and intangible property in realized form.
B) Real property is land and everything permanently attached to it.
C) Real property is all tangible property including land.
D) Real property is only land.
2. 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) $0
B) $3,000
C) $10,000
D) $5,000
3. DAC Foundation awarded Kent $75,000 in recognition of lifelong literary achievement. Kent was not
required to render future services as a condition to receive the $75,000. What condition(s) must have
been met for the award to be excluded from Kent's gross income?
I. Kent was selected for the award by DAC without any action on Kent's part.
II. Pursuant to Kent's designation, DAC paid the amount of the award either to a governmental unit or to a
charitable organization.
A) I only.
B) Neither I nor II.
C) Both I and II.
D) II only.
4. 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) Utilities and maintenance on the property must be divided between personal and rental use.
B) All mortgage interest and taxes on the property will be deducted to determine the property's net income
or loss.
C) A rental loss may be deducted if rental-related expenses exceed rental income.
D) Depreciation may not be deducted on the property under any circumstances.
5. 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 stock dividend in 1994 from Ace Corp. They had the option to receive either cash
or Ace stock with a fair market value of $900 as of the date of distribution. The par value of the stock was
$ 500.
A) $55,000
B) $2,000
C) $1,000
D) $500
E) $1,500
F) $50,000
G) $1,250
H) $900
I) $75,000
J) $0
K) $3,000
L) $10,000
M) $25,000
N) $1,300
O) $2,500
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: A | Question # 5 Answer: H |
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