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AICPA REG Exam Syllabus Topics:

AICPA CPA Regulation Sample Questions:

1. Which of the following statements is the best definition of real property?

A) Real property is land and everything permanently attached to it.
B) Real property is only land.
C) Real property is land and intangible property in realized form.
D) Real property is all tangible property including land.

2. Under a $150,000 insurance policy on her deceased father's life, May Green is to receive $12,000 per
year for 15 years. Of the $12,000 received in 1987, the amount subject to income tax is:

A) $12,000
B) $2,000
C) $1,000
D) $0

3. 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) $4,000
C) $500
D) $4,500

4. Mosh, a sole proprietor, uses the cash basis of accounting. At the beginning of the current year, accounts
receivable were $25,000. During the year, Mosh collected $100,000 from customers. At the end of the
year, accounts receivable were $15,000. What was Mosh's gross taxable income for the current year?

A) $110,000
B) $90,000
C) $75,000
D) $100,000

5. Which of the following is subject to the Uniform Capitalization Rules of Code Sec. 263A?

A) Warehousing costs incurred by a manufacturing company with $12 million in annual gross receipts.
B) Research and experimental expenditures.
C) Editorial costs incurred by a freelance writer.
D) Mine development and exploration costs.

Solutions: