How many sections are on the CPA exam?

The CPA exam has 4 required sections: 3 core sections (FAR — Financial Accounting, AUD — Auditing, REG — Regulation) and 1 discipline section of your choice (BAR, ISC, or TCP).

What is the passing score for the CPA exam?

A score of 75 (on a scale of 0–99) is required to pass each CPA exam section.

How long do I have to pass all CPA exam sections?

Candidates have 30 months from the date they pass their first section to pass all remaining sections.

How many questions are in each CPA exam section?

Each section contains approximately 72–78 multiple choice questions plus task-based simulations (TBS). The exact number varies by section.

CPA REG Practice Exam 2 — Free 72-Question CPA Practice Test

Q01A CPA is representing a client in an IRS examination regarding a complex tax shelter transaction. The CPA discovers t...Hard

Q02A tax return preparer is facing a penalty for an understatement of tax liability on a client's return. The understate...Hard

Q03Taxpayer L received a Statutory Notice of Deficiency (90-day letter) from the IRS regarding a tax dispute of $75,000....Hard

Q04A CPA is sued for common law negligence by a third party who relied on the CPA's audit report. The jurisdiction follo...Hard

Q05Which of the following communications between a CPA and a client would generally be protected by the federally author...Hard

Q06A taxpayer filed their Year 1 tax return on March 15, Year 2. The return reported gross income of $100,000 and tax li...Hard

Q07Under the Uniform Accountancy Act (UAA), which of the following is a ground for a State Board of Accountancy to revok...Hard

Q08P, a principal, engaged A as an agent to buy 100 acres of land. P instructed A to keep P's identity secret. A entered...Hard

Q09On June 1, Buyer sent a purchase order to Seller for 1,000 widgets at $10 each. The purchase order stated 'delivery b...Hard

Q10Debtor D has filed for Chapter 7 bankruptcy. Which of the following debts is most likely to be discharged?Hard

Q11Lender A lent Money to Debtor and perfected a security interest in Debtor's equipment on February 1. Lender B lent mo...Hard

Q12Under the Foreign Corrupt Practices Act (FCPA), which of the following payments is most likely prohibited?Hard

Q13Which of the following business entities generally provides all of its owners with limited liability while allowing t...Hard

Q14Under the Revised Model Business Corporation Act, which of the following actions generally requires shareholder appro...Hard

Q15A taxpayer purchased a machine for use in their business for $20,000. They paid $1,000 for shipping and $2,000 for in...Hard

Q16In Year 1, J purchased stock for $10,000. In Year 3, J gave the stock to K when the fair market value (FMV) was $8,00...Hard

Q17Company X purchased 5-year MACRS property for $200,000 and placed it in service on November 15 of the current year. T...Hard

Q18A taxpayer sold a building used in their business for $500,000. The building was purchased for $400,000. Total deprec...Hard

Q19Which of the following items is EXCLUDED from gross income for federal income tax purposes?Hard

Q20Taxpayer A, a single individual, has Adjusted Gross Income (AGI) of $150,000. A actively participates in a rental rea...Hard

Q21In Year 1, Taxpayer T had a net short-term capital loss of $2,000 and a net long-term capital loss of $4,000. T had n...Hard

Q22Which of the following is a 'refundable' tax credit?Hard

Q23Corporation C had book income of $500,000. Included in book income was $10,000 of municipal bond interest. C paid $5,...Hard

Q24S Corporation Status: Which of the following shareholders would cause a corporation to be INELIGIBLE to make an S ele...Hard

Q25Partner A contributed property with a basis of $10,000 and a fair market value (FMV) of $20,000 to the AB Partnership...Hard

Q26A C Corporation owns 30% of the voting stock of a domestic corporation. The C Corporation received $10,000 in dividen...Hard

Q27Under the Uniform Commercial Code (UCC) Sales Article, which of the following warranties is created by an express aff...Hard

Q28A taxpayer had the following income in the current year: Salary $50,000; Partnership Income (active) $10,000; Interes...Hard

Q29Which of the following acts by a CPA would most likely result in the assessment of a penalty for 'willful or reckless...Hard

Q30Under the Statute of Frauds, which of the following contracts must be in writing to be enforceable?Hard

Q31A taxpayer holds a 50% interest in an S Corporation. At the beginning of the year, their stock basis was $10,000. Dur...Hard

Q32Which of the following is a requirement for a security interest to 'attach' under UCC Article 9?Hard

Q33A taxpayer operates a consulting business as a sole proprietorship. In the current year, the business had net income ...Hard

Q34Which of the following creates a 'temporary difference' between book income and tax income?Hard

Q35Under the Revised Uniform Partnership Act (RUPA), absent an agreement to the contrary, how are profits and losses sha...Hard

Q36Taxpayer B, a single individual, died on January 15, Year 1. The executor of B's estate elects a fiscal year ending O...Hard

Q37Which of the following is a requirement for a payment to be classified as alimony for a divorce agreement executed in...Hard

Q38A taxpayer exchanged a business truck (Adjusted Basis $10,000, FMV $15,000) for another business truck (FMV $15,000)....Hard

Q39Which of the following is a primary authority for tax purposes?Hard

Q40Under the Affordable Care Act (ACA), an Applicable Large Employer (ALE) may be subject to a penalty if it fails to of...Hard

Q41A C Corporation had a net capital loss of $10,000 in Year 4. It had reported net capital gains of $2,000 in Year 1, $...Hard

Q42Which of the following is a 'separately stated item' on a Partnership Schedule K-1?Hard

Q43Under the Uniform Capitalization Rules (UNICAP) of IRC §263A, which of the following costs must be capitalized into i...Hard

Q44A taxpayer received a gift of $15,000 cash from a friend and inherited $50,000 cash from an aunt in the current year....Hard

Q45Which of the following is a requirement for a valid contract under common law?Hard

Q46A taxpayer is a 10% partner in a partnership. The partnership incurred a $100,000 ordinary loss for the year. The tax...Hard

Q47Which of the following is a characteristic of a 'Section 1231 asset'?Hard

Q48A taxpayer had the following in the current year: Wages $40,000; Net Short-Term Capital Gain $2,000; Net Long-Term Ca...Hard

Q49Under Circular 230, a practitioner may charge a contingent fee in which of the following situations?Hard

Q50Which of the following is a requirement for a 'Qualified Subchapter S Subsidiary' (QSub)?Hard

Q51A taxpayer purchased a $10,000 machine for business use. They elected to expense $6,000 under Section 179. What is th...Hard

Q52Which of the following is a 'void' contract?Hard

Q53A taxpayer had $50,000 of wages and $3,000 of gambling winnings. They had $4,000 of gambling losses. They itemize ded...Hard

Q54Which of the following entities reports its income on Form 1065?Hard

Q55Under the UCC Secured Transactions Article (Article 9), which of the following will perfect a security interest in a ...Hard

Q56A C Corporation distributes land to a shareholder as a dividend. The land has an adjusted basis of $10,000 and a fair...Hard

Q57Which of the following is deductible as a medical expense on Schedule A (subject to the 7.5% AGI floor)?Hard

Q58A partner in a partnership receives a guaranteed payment of $10,000 for services rendered. The partnership has $50,00...Hard

Q59Which of the following defenses is available to a surety to avoid liability on a debt?Hard

Q60A taxpayer sold their principal residence for $600,000. They purchased it 5 years ago for $200,000 and have lived in ...Hard

Q61Which of the following is an 'above-the-line' deduction (Adjustment to Income) for an individual taxpayer?Hard

Q62In a liquidating distribution of a partnership, Partner P receives cash of $10,000 and inventory with a basis to the ...Hard

Q63Which of the following organizations must file an annual information return (Form 990) with the IRS?Hard

Q64Under the Sales Article of the UCC, the warranty of title:Hard

Q65Taxpayer M, age 50, withdrew $10,000 from a traditional IRA in the current year to pay for unreimbursed medical expen...Hard

Q66A corporation has a $50,000 Net Operating Loss (NOL) in the current year (Year 5). It had taxable income of $20,000 i...Hard

Q67Which of the following acts is most likely to cause a piercing of the corporate veil, holding shareholders personally...Hard

Q68A taxpayer is a 'Specified Service Trade or Business' (SSTB) with taxable income of $500,000 (Married Filing Jointly)...Hard

Q69Under the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA), a Chapter 7 filing may be dismissed or co...Hard

Q70A taxpayer purchased a bond for $900 (face value $1,000) in the secondary market. The bond has $100 of market discoun...Hard

Q71Which of the following creates 'nexus' for state income tax purposes under Public Law 86-272?Hard

Q72A taxpayer operates an illegal drug trafficking business. Which of the following expenses are deductible for tax purp...Hard

CPA REG Practice Exam 2

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