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 3 — Free 72-Question CPA Practice Test

Q01A CPA is preparing an original tax return for a client who is claiming a refund based on a position that has a reason...Hard

Q02A practitioner is representing a taxpayer in an IRS examination. The taxpayer has a 25% ownership interest in a partn...Hard

Q03A tax return preparer willfully attempts to understate the tax liability on a client's return by intentionally omitti...Hard

Q04Which of the following scenarios would most likely result in the assessment of a penalty for failure to sign a tax re...Hard

Q05Regarding the disciplinary authority of State Boards of Accountancy, which of the following statements is correct?Hard

Q06A taxpayer filed their Year 1 tax return on March 15, Year 2. The return omitted $6,000 of gross income. The total gr...Hard

Q07A taxpayer disagrees with a proposed deficiency from the IRS and wishes to litigate the matter. The taxpayer wants to...Hard

Q08A CPA is sued for negligence by a third party who relied on the CPA's audited financial statements. The jurisdiction ...Hard

Q09Which of the following authorities carries the highest weight in the federal tax hierarchy?Hard

Q10A taxpayer failed to file their tax return by the due date (including extensions). The tax due was $10,000. The retur...Hard

Q11Peyton is the manager of a retail store owned by Corp X. Corp X explicitly instructed Peyton not to hire any vendors ...Hard

Q12Under the UCC Sales Article, which of the following statements is correct regarding the 'Battle of the Forms' between...Hard

Q13Which of the following oral contracts is enforceable under the Statute of Frauds?Hard

Q14In a Chapter 7 bankruptcy liquidation, which of the following claims has the highest priority for distribution?Hard

Q15On May 1, Vendor A sold a machine to Debtor on credit and retained a security interest. Vendor A delivered the machin...Hard

Q16Which of the following defenses would effectively release a gratuitous surety from liability to a creditor?Hard

Q17Under the Foreign Corrupt Practices Act (FCPA), which of the following payments would most likely be prohibited?Hard

Q18In Year 1, Alex received a gift of stock from a parent. The parent's adjusted basis was $10,000, and the fair market ...Hard

Q19A taxpayer purchased 100 shares of TechCorp stock for $5,000 on January 1. On December 15 of the same year, the taxpa...Hard

Q20In Year 1, a taxpayer placed the following 5-year MACRS assets in service: Asset A (Cost $100,000) on February 1; Ass...Hard

Q21A company acquired a patent for $150,000 as part of the purchase of a trade or business on August 1 of Year 1. What i...Hard

Q22A taxpayer sold a machine used in their business for $50,000. The machine was purchased for $40,000, and $15,000 of d...Hard

Q23An employee receives $150,000 of group-term life insurance coverage from their employer. The policy is non-discrimina...Hard

Q24In Year 1, a taxpayer itemized deductions and deducted $5,000 of state income taxes. The total itemized deductions ex...Hard

Q25A single taxpayer sold their principal residence for a $400,000 gain. They had owned and lived in the home for only 1...Hard

Q26A self-employed taxpayer had net earnings from self-employment of $100,000. They paid $12,000 in health insurance pre...Hard

Q27A taxpayer donated a painting to a public charity (museum) which displayed it. The taxpayer had owned the painting fo...Hard

Q28A married couple filing jointly paid the following taxes in the current year: State income tax $8,000; Real estate ta...Hard

Q29A taxpayer has $50,000 of salary, $10,000 of passive income from a rental activity, and $25,000 of passive losses fro...Hard

Q30A single taxpayer has Adjusted Gross Income (AGI) of $140,000. They actively participate in a rental real estate acti...Hard

Q31A C Corporation has gross income of $500,000, operating expenses of $300,000, and dividends received from a 25%-owned...Hard

Q32Shareholder A contributes property with a basis of $20,000 and FMV of $50,000 to a C Corporation in exchange for 40% ...Hard

Q33A C Corporation distributes land to its sole shareholder as a dividend. The land has a basis of $20,000 and a FMV of ...Hard

Q34An S Corporation has an Accumulated Adjustments Account (AAA) of $20,000 and Accumulated Earnings and Profits (AEP) f...Hard

Q35Partner A contributes land with a basis of $40,000 and FMV of $100,000 to a partnership for a 50% interest. The land ...Hard

Q36A partnership distributes cash of $10,000 and property with a basis of $15,000 (FMV $20,000) to a partner in a non-li...Hard

Q37Which of the following items is a permanent difference for Schedule M-1 purposes?Hard

Q38A C Corporation had a net capital loss of $20,000 in Year 4. It had capital gains of $5,000 in Year 1, $8,000 in Year...Hard

Q39Which of the following entities is eligible to elect S Corporation status?Hard

Q40A taxpayer has a $10,000 loss from a rental real estate activity in which they actively participate. Their Modified A...Hard

Q41Under the Uniform Capitalization Rules (UNICAP) of IRC §263A, which of the following costs must be capitalized into i...Hard

Q42A taxpayer's spouse died in Year 1. The taxpayer has a dependent child who lives with them. The taxpayer did not rema...Hard

Q43Which of the following credits is refundable?Hard

Q44A taxpayer has Net Investment Income (NII) of $50,000 and Modified AGI of $220,000. The filing status is Single (Thre...Hard

Q45Which of the following is an adjustment (add-back) for Alternative Minimum Tax (AMT) purposes for an individual?Hard

Q46A C Corporation distributes assets in a complete liquidation. The assets have a basis of $100,000 and FMV of $300,000...Hard

Q47Which of the following organizations must file an annual information return (Form 990) with the IRS?Hard

Q48A multistate corporation has the following factors: Sales in State A $500,000; Total Sales $1,000,000. Payroll in Sta...Hard

Q49Under the Revised Model Business Corporation Act, which of the following actions requires shareholder approval?Hard

Q50A partner in a general partnership transfers their partnership interest to a third party without the consent of the o...Hard

Q51Which of the following creates a 'rebuttable presumption' that a payment to a worker is for an employee relationship ...Hard

Q52A taxpayer exchanges a business building (Adjusted Basis $100,000, FMV $200,000) for a new business building (FMV $18...Hard

Q53Which of the following acts by a debtor would constitute a 'preference' voidable by a bankruptcy trustee?Hard

Q54A taxpayer purchased a bond for $900 (Face Value $1,000) on the secondary market. The bond has 5 years to maturity. T...Hard

Q55Under the Affordable Care Act (ACA), an Applicable Large Employer (ALE) may be subject to a penalty if it fails to of...Hard

Q56A taxpayer has a $5,000 short-term capital loss, a $2,000 short-term capital gain, and a $10,000 long-term capital ga...Hard

Q57Which of the following statements regarding the Section 179 expense deduction is correct for the current year?Hard

Q58A C Corporation incurs $60,000 of organizational costs in its first year of operations. What is the maximum deduction...Hard

Q59A taxpayer receives a non-qualified stock option (NQSO) with a readily ascertainable fair market value at the grant d...Hard

Q60A C Corporation distributes a property dividend. The property has a basis of $10,000, FMV of $40,000, and is subject ...Hard

Q61Which of the following is a requirement for a valid contract under Common Law?Hard

Q62A taxpayer has a 50% interest in a partnership. The partnership agreement states that the taxpayer receives a guarant...Hard

Q63Under the UCC Secured Transactions Article, which of the following is required for the 'attachment' of a security int...Hard

Q64A taxpayer's student loan interest for the year was $3,000. The taxpayer is single with Modified AGI of $60,000 (belo...Hard

Q65Which of the following acts generally requires the filing of a Currency Transaction Report (CTR) by a financial insti...Hard

Q66A taxpayer is a 10% shareholder in an S Corporation. The corporation paid $5,000 of health insurance premiums for the...Hard

Q67Which of the following is a 'Section 751 asset' (Hot Asset) that triggers ordinary income recognition upon the sale o...Hard

Q68A taxpayer has a Qualified Business Income (QBI) of $100,000 from a sole proprietorship. The taxpayer is single with ...Hard

Q69Which of the following is a requirement for a valid deed to transfer real property?Hard

Q70A tax-exempt organization has $5,000 of unrelated business taxable income (UBTI). What is the filing requirement and ...Hard

Q71Which of the following is a primary difference between a Public Charity and a Private Foundation?Hard

Q72A taxpayer sold stock for $10,000 that was purchased two years ago for $6,000. The taxpayer is in the 37% ordinary in...Hard

CPA REG Practice Exam 3

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