AICPA REG Actual Tests : CPA Regulation

AICPA REG Exam Syllabus Topics:

AICPA CPA Regulation Sample Questions:

1. A cash basis taxpayer should report gross income:

A) Only for the year in which income is actually received in cash.
B) For the year in which income is either actually or constructively received in cash only.
C) For the year in which income is either actually or constructively received, whether in cash or in
property.
D) Only for the year in which income is actually received whether in cash or in property.

2. Among which of the following related parties are losses from sales and exchanges not recognized for tax
purposes?

A) Ancestors, lineal descendants, and all in-laws.
B) Father-in-law and son-in-law.
C) Brother-in-law and sister-in-law.
D) Grandfather and granddaughter.

3. 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) $10,000
B) $8,600
C) $5,600
D) $8,000

4. 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.

5. 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) $90,000
B) $75,000
C) $100,000
D) $110,000

Solutions: