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 4 — Free 72-Question CPA Practice Test

Q01A CPA is representing a client in an IRS examination. The client has requested that the CPA not provide certain docum...Hard

Q02A tax return preparer is engaged to prepare a tax return for a client who has a significant deduction that is not sup...Hard

Q03Regarding the burden of proof in a civil tax proceeding, which of the following statements is correct regarding the s...Hard

Q04A taxpayer filed their Year 1 individual income tax return on April 1, Year 2. The return reported gross income of $1...Hard

Q05Under the Ultramares doctrine regarding a CPA's liability for negligence to third parties, which of the following par...Hard

Q06Which of the following communications between a CPA and a client would generally be protected by the tax practitioner...Hard

Q07A taxpayer owes the IRS $50,000 in unpaid taxes. The taxpayer files a petition with the U.S. Tax Court to challenge t...Hard

Q08Pace Corp. is incorporated in State A but does business in States A, B, and C. State B uses a three-factor apportionm...Hard

Q09Under the Revised Model Business Corporation Act, which of the following statements is correct regarding a shareholde...Hard

Q10Which of the following scenarios would most likely result in a 'piercing of the corporate veil,' holding shareholders...Hard

Q11Under the Uniform Commercial Code (UCC) Article 9, which of the following actions will perfect a security interest in...Hard

Q12A debtor files for Chapter 7 bankruptcy. Which of the following debts is generally dischargeable?Hard

Q13Under the Sales Article of the UCC (Article 2), which of the following statements is correct regarding the Statute of...Hard

Q14A principal hires an agent to manage a retail business. The principal instructs the agent not to purchase inventory f...Hard

Q15Which of the following acts is generally prohibited under the Foreign Corrupt Practices Act (FCPA)?Hard

Q16In Year 1, Jordan received a gift of stock from a parent. The parent's adjusted basis was $10,000, and the fair marke...Hard

Q17A taxpayer purchased a machine for business use on November 15, Year 1, for $100,000. This was the only personal prop...Hard

Q18In a like-kind exchange under IRC §1031 (post-TCJA), which of the following exchanges qualifies for nonrecognition of...Hard

Q19A taxpayer sells stock for a loss of $5,000 on May 1. On May 15, the taxpayer purchases substantially identical stock...Hard

Q20Regarding the Net Investment Income Tax (NIIT) under IRC §1411, which of the following items is included in 'Net Inve...Hard

Q21A taxpayer, age 45, is a single filer with high income. Which of the following itemized deductions is subject to a 'f...Hard

Q22In Year 1, a taxpayer exercised Incentive Stock Options (ISOs) to purchase 1,000 shares of stock. The exercise price ...Hard

Q23A self-employed taxpayer had net earnings from self-employment of $100,000. The self-employment tax liability was app...Hard

Q24Under the Qualified Business Income (QBI) deduction (IRC §199A), which of the following businesses is considered a 'S...Hard

Q25A taxpayer has a $10,000 passive activity loss from a rental real estate activity in the current year. The taxpayer i...Hard

Q26Regarding the Child Tax Credit (CTC) for tax years 2018-2025, which of the following statements is correct regarding ...Hard

Q27A C Corporation has current year Earnings & Profits (E&P) of $20,000 and accumulated E&P of ($30,000) at the beginnin...Hard

Q28Shareholders A (80%) and B (20%) form a C Corporation. A contributes property with a basis of $20,000 and FMV of $80,...Hard

Q29A C Corporation has taxable income of $500,000 before the charitable contribution deduction and the Dividends Receive...Hard

Q30Which of the following entities is eligible to elect S Corporation status?Hard

Q31An S Corporation distributes property with a fair market value of $50,000 and an adjusted basis of $30,000 to its sol...Hard

Q32A partner contributes services worth $50,000 in exchange for a 25% capital interest in a partnership. The partnership...Hard

Q33In a non-liquidating distribution, a partnership distributes cash of $10,000 and property with an adjusted basis of $...Hard

Q34Which of the following items is a 'separately stated item' on a Partnership Schedule K-1?Hard

Q35Under the Uniform Capitalization Rules (UNICAP) of IRC §263A, which of the following costs must be capitalized into i...Hard

Q36A taxpayer receives a refund of $1,000 in Year 2 for state income taxes paid in Year 1. In Year 1, the taxpayer claim...Hard

Q37Which of the following is a 'permanent difference' for Schedule M-3 reconciliation purposes?Hard

Q38A C Corporation incurs $55,000 in organizational costs to start the business. It begins business on July 1, Year 1. W...Hard

Q39Under the Revised Uniform Partnership Act (RUPA), absent an agreement to the contrary, how are profits and losses sha...Hard

Q40A taxpayer has $5,000 of investment interest expense in the current year. The taxpayer has $3,000 of interest income ...Hard

Q41Which of the following statements is correct regarding the 'at-risk' rules for loss limitations?Hard

Q42A taxpayer sells a personal residence for $600,000. They bought it 3 years ago for $200,000 and have lived in it as t...Hard

Q43Under the Affordable Care Act (ACA), which of the following employers is an 'Applicable Large Employer' (ALE) subject...Hard

Q44A C Corporation has a net capital loss of $10,000 in Year 4. It reported the following net capital gains in prior yea...Hard

Q45Which of the following creates a 'temporary difference' for deferred tax purposes?Hard

Q46A taxpayer is a 50% partner in a partnership. The partnership agreement states that the taxpayer is guaranteed a paym...Hard

Q47Which of the following defenses would effectively release a surety from liability to a creditor?Hard

Q48A taxpayer purchased a $10,000 computer for business use. The taxpayer wants to maximize the deduction in the current...Hard

Q49Which of the following is required for a valid contract to be formed?Hard

Q50A taxpayer has a $3,000 short-term capital loss and a $2,000 long-term capital gain in the current year. The taxpayer...Hard

Q51Under the Uniform Accountancy Act, which of the following is generally a requirement for a CPA to practice across sta...Hard

Q52A taxpayer contributes property with a basis of $10,000 and a fair market value of $15,000 to a qualified charitable ...Hard

Q53Which of the following is a requirement for a valid deed to transfer real property?Hard

Q54A taxpayer has a home office that is used exclusively and regularly as the principal place of business. The gross inc...Hard

Q55Which of the following credits is a 'refundable' tax credit?Hard

Q56A C Corporation distributes land to a shareholder as a dividend. The land has a FMV of $50,000 and is subject to a li...Hard

Q57Which of the following acts by a partner would likely be considered a violation of the duty of loyalty under the Revi...Hard

Q58A taxpayer holds a $10,000 bond issued by the City of New York. The bond pays $500 of interest in the current year. T...Hard

Q59Under the UCC Secured Transactions Article (Article 9), if a debtor defaults, which of the following is a right of th...Hard

Q60A taxpayer is a 10% shareholder in an S Corporation. The taxpayer's stock basis at the beginning of the year is $10,0...Hard

Q61Which of the following is a requirement for a corporation to be classified as a Personal Holding Company (PHC)?Hard

Q62A taxpayer exchanges a business warehouse (adjusted basis $100,000, FMV $200,000) for a new warehouse (FMV $180,000) ...Hard

Q63Regarding the Accumulated Earnings Tax (AET), what is the minimum accumulated earnings credit allowed for a manufactu...Hard

Q64A taxpayer has a Net Operating Loss (NOL) in 2024. Which of the following statements is correct regarding the carryov...Hard

Q65Which of the following is a requirement for a valid 'Incentive Stock Option' (ISO)?Hard

Q66A taxpayer is a 40% partner in a partnership. The partnership has $100,000 of recourse liabilities and $50,000 of non...Hard

Q67Which of the following is a 'primary authority' for tax research purposes?Hard

Q68A C Corporation distributes appreciated property to a shareholder in a complete liquidation. Which of the following s...Hard

Q69Under the UCC, an implied warranty of merchantability arises when:Hard

Q70A taxpayer is a general partner in a partnership. The partnership agreement provides for a guaranteed payment for ser...Hard

Q71Which of the following tax-exempt organizations must file an annual information return (Form 990)?Hard

Q72A taxpayer sells a rental property for $500,000. The property was purchased for $400,000. The taxpayer claimed $100,0...Hard

CPA REG Practice Exam 4

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