Wiley CPAexcel Exam Review 2014 Study Guide, Regulation

✍ Scribed by O. Ray Whittington

• Publisher: Wiley
• Year: 2013
• Tongue: English
• Leaves: 926
• Edition: 11
• Category: Library

✦ Synopsis

Everything today's CPA candidates need to pass the CPA Exam

Published annually, this Regulation volume of the comprehensive four-volume paperback reviews all current AICPA content requirements in business environment and concepts. Many of the questions are taken directly from previous CPA exams. With 2,800 multiple-choice questions in all four volumes, these study guides provide all the information candidates need to master in order to pass the computerized Uniform CPA Examination. Its unique modular format helps you zero in on those areas that need more attention and organize your study program.

• Complete sample exam
• The most effective system available to prepare for the CPA exam—proven for over thirty years
• Timely—up-to-the-minute coverage for the computerized exam
• Contains all current AICPA content requirements in business environment and concepts
• Unique modular format—helps candidates zero in on areas that need work, organize their study program, and concentrate their efforts
• Comprehensive questions—over 2,800 multiple-choice questions and their solutions in the four volumes
• Guidelines, pointers, and tips—show how to build knowledge in a logical and reinforcing way
• Other titles by Whittington: Audit Sampling: An Introduction, Fifth Edition

Wiley CPA Exam Review 2014 arms test-takers with detailed outlines, study guidelines, and skill-building problems to help candidates identify, focus on, and master the specific topics that need the most work.

✦ Table of Contents

Wiley CPAexcel® Exam Review 2014 Study Guide: Regulation......Page 5
Copyright......Page 6
Contents......Page 7
Preface......Page 9
About the Contributors......Page 11
Introduction......Page 13
Nondisclosure and Computerization of Examination......Page 15
Applying to Take the Examination......Page 16
Attributes of Examination Success......Page 17
Purpose and Organization of This Review Textbook......Page 19
Ordering Other Textual Materials......Page 20
Self-Study Program......Page 21
Self-Evaluation......Page 22
Time Allocation......Page 23
Multiple-Choice Feedback......Page 24
Overall Strategy......Page 25
Time Management of Your Preparation......Page 26
Task-Based Simulation Grading......Page 29
Requesting a Score Review......Page 30
Multiple-Choice Screen Layout......Page 31
Multiple-Choice Question Solutions Approach Example......Page 32
Task-Based Simulations......Page 33
Task-Based Simulations Solutions Approach......Page 34
Research Simulations......Page 36
Time Requirements for the Solutions Approach......Page 38
Test Center and Procedures......Page 39
What to bring......Page 40
Exam-taking strategy......Page 41
After taking the examination......Page 42
Content Specification Outlines (CSOs)......Page 43
Weights......Page 46
Outlines......Page 47
Researching Income Tax Issues......Page 48
Database Searching......Page 49
Advanced Searches......Page 50
Professional Responsibilities and Business Law......Page 51
A. Regulation of the Profession......Page 53
B. Disciplinary Systems of the Profession and Regulatory Bodies......Page 54
C. Accountant's Legal Liabilities......Page 55
D. Legal Considerations Affecting the Accountant's Responsibility......Page 64
E. Criminal Liability......Page 66
F. Responsibilities of Auditors under Private Securities Litigation Reform Act......Page 67
G. Responsibilities under Sarbanes-Oxley Act......Page 68
I. Responsibilities of Tax Return Preparers......Page 71
Key Terms......Page 76
Multiple-Choice Questions (1–79)......Page 78
Multiple-Choice Answers and Explanations......Page 86
Simulations......Page 93
Simulation Solutions......Page 95
A. Securities Act of 1933......Page 99
B. Securities Exchange Act of 1934......Page 107
C. The Sarbanes-Oxley Act of 2002......Page 111
D. The Wall Street Reform and Consumer Protection (Dodd-Frank) Act of 2010......Page 112
E. Exemptions for Smaller and Emerging Companies......Page 113
Key Terms......Page 114
Multiple-Choice Questions (1–45)......Page 115
Multiple-Choice Answers and Explanations......Page 120
Simulations......Page 124
Simulation Solutions......Page 127
Module 25: Business Structure......Page 131
B. Nature of Partnerships......Page 132
C. Formation of Partnership......Page 133
D. Partner's Rights and Operation of Partnership......Page 134
E. Relationship to Third Parties......Page 136
F. Termination of a Partnership......Page 138
G. Limited Partnerships......Page 140
H. Joint Ventures......Page 142
I. Limited Liability Companies (LLC)......Page 143
K. Subchapter C Corporations......Page 146
M. Disadvantages of Corporate Business Structure......Page 147
N. Types of Corporations......Page 148
O. Formation of Corporation......Page 149
P. Corporate Financial Structure......Page 150
Q. Powers and Liabilities of Corporation......Page 152
R. Directors and Officers of Corporations......Page 153
S. Stockholder's Rights......Page 155
T. Stockholder's Liability......Page 157
V. Subchapter S Corporation......Page 158
Key Terms......Page 159
Multiple-Choice Questions (1–97)......Page 160
Multiple-Choice Answers and Explanations......Page 170
Simulation......Page 178
Simulation Solution......Page 179
A. Essential Elements of a Contract......Page 181
C. Discussion of Essential Elements of a Contract......Page 182
D. Written Contracts......Page 195
E. Assignment and Delegation......Page 201
F. Third-Party Beneficiary Contracts......Page 202
G. Performance of Contract......Page 204
H. Discharge of Contracts......Page 205
I. Remedies......Page 206
J. Jurisdiction over Defendant for Online Transactions......Page 207
Key Terms......Page 208
Multiple-Choice Questions (1–56)......Page 209
Multiple-Choice Answers and Explanations......Page 216
Simulations......Page 222
Simulation Solutions......Page 224
A. Contracts for Sale of Goods......Page 227
B. Forming the Contract for the Sale of Goods......Page 228
C. Performance of the Sales Contract......Page 231
D. Transfer of Title (Property Rights)......Page 233
E. Risk of Loss......Page 234
F. Product Liability......Page 236
G. Remedies under Sales Law......Page 240
H. Leases under UCC......Page 242
I. Contracts for the International Sales of Goods (CISG)......Page 243
Key Terms......Page 244
Multiple-Choice Questions (1–48)......Page 245
Multiple-Choice Answers and Explanations......Page 251
Simulations......Page 256
Simulation Solutions......Page 258
A. General Concepts of Commercial Paper......Page 261
B. Types of Commercial Paper......Page 262
C. Requirements of Negotiability......Page 263
D. Interpretation of Ambiguities in Negotiable Instruments......Page 267
E. Negotiation......Page 268
F. Holder in Due Course......Page 271
G. Rights of a Holder in Due Course......Page 272
H. Liability of Parties......Page 276
I. Additional Issues......Page 280
J. Banks......Page 281
L. Fund Transfers under UCC Article 4A......Page 282
M. Transfer of Negotiable Documents of Title......Page 283
Key Terms......Page 284
Multiple-Choice Questions (1–50)......Page 286
Multiple-Choice Answers and Explanations......Page 293
Simulations......Page 298
Simulation Solutions......Page 301
A. The Elements of Secured Transactions......Page 305
B. Attachment of Security Interests......Page 306
C. Perfecting a Security Interest......Page 307
D. Other Issues under Secured Transactions......Page 309
E. Priorities......Page 310
F. Rights of Parties upon Default......Page 313
Key Terms......Page 314
Multiple-Choice Questions (1–30)......Page 315
Multiple-Choice Answers and Explanations......Page 319
Simulation......Page 322
Simulation Solution......Page 323
A. Alternatives to Bankruptcy Proceedings......Page 325
E. Chapter 7 Voluntary Bankruptcy Petitions......Page 326
F. Chapter 7 Involuntary Bankruptcy Petitions......Page 327
G. Chapter 7 Bankruptcy Proceedings......Page 329
H. Claims......Page 333
I. Priority of Claims......Page 334
J. Discharge of the Debtor......Page 335
K. Debts Not Discharged by Bankruptcy......Page 336
M. Reaffirmation......Page 337
N. Business Reorganization—Chapter 11......Page 338
P. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005......Page 339
Key Terms......Page 340
Multiple-Choice Questions (1–31)......Page 342
Multiple-Choice Answers and Explanations......Page 346
Simulations......Page 350
Simulation Solutions......Page 352
A. Rights and Duties of Debtors and Creditors......Page 355
B. Nature of Suretyship and Guaranty......Page 359
C. Creditor's Rights and Remedies......Page 361
D. Surety's/Guarantor's Rights and Remedies......Page 362
E. Surety's/Guarantor's Defenses......Page 363
F. Cosureties......Page 366
Key Terms......Page 368
Multiple-Choice Questions (1–27)......Page 369
Multiple-Choice Answers and Explanations......Page 372
Simulation......Page 375
Simulation Solution......Page 376
B. Examples of Principals and Agents......Page 377
C. Methods of Creation......Page 379
E. Liability to Third Parties......Page 380
F. Termination of Principal-Agent Relationship......Page 383
Key Terms......Page 385
Multiple-Choice Questions (1–27)......Page 386
Multiple-Choice Answers and Explanations......Page 389
Simulation......Page 392
Simulation Solution......Page 393
A. Federal Social Security Act......Page 395
B. Workers' Compensation Act......Page 399
C. Employee Safety......Page 401
D. Employment Discrimination......Page 402
F. National Labor Relations Act (NLRA)......Page 404
H. Pensions......Page 405
L. Environmental Regulation......Page 406
P. Antitrust Law......Page 412
Q. Sherman Act of 1890......Page 413
R. Clayton Act of 1914......Page 417
S. Robinson-Patman Act of 1936......Page 418
T. Federal Trade Commission Act of 1914......Page 419
Key Terms......Page 420
Multiple-Choice Questions (1–47)......Page 422
Multiple-Choice Answers and Explanations......Page 427
Simulation......Page 431
Simulation Solution......Page 432
A. Distinctions between Real and Personal Property......Page 433
B. Personal Property Can Be Acquired By......Page 434
C. Bailments......Page 435
D. Intellectual Property and Computer Technology Rights......Page 436
E. Interests in Real Property......Page 443
F. Contracts for Sale of Land......Page 446
H. Executing a Deed......Page 447
J. Title Insurance......Page 448
L. Easement by Prescription......Page 449
M. Mortgages......Page 450
N. Lessor-Lessee......Page 452
Key Terms......Page 454
Multiple-Choice Questions (1–43)......Page 456
Multiple-Choice Answers and Explanations......Page 461
Simulation......Page 465
Simulation Solution......Page 467
Federal Taxation......Page 469
Module 35: Individual Taxation......Page 471
B. Exclusions from Gross Income (not reported)......Page 473
C. Interest on tax refunds......Page 479
D. Accounting Periods......Page 484
E. Tax Accounting Methods......Page 485
F. Business Income and Deductions......Page 488
G. Depreciation, Depletion, and Amortization......Page 495
H. Domestic Production Activities Deduction (DPAD)......Page 500
B. Expenses Attributable to Property......Page 501
E. Moving Expenses......Page 502
F. Contributions to Certain Retirement Plans......Page 503
G. Deduction for Interest on Education Loans......Page 505
III. Itemized Deductions from Adjusted Gross Income......Page 506
A. Medical and Dental Expenses......Page 507
B. Taxes......Page 508
C. Interest Expense......Page 509
D. Charitable Contributions......Page 511
E. Personal Casualty and Theft Gains and
Losses......Page 515
F. Miscellaneous Deductions......Page 517
IV. Exemptions......Page 518
A. Tax Tables......Page 520
B. Tax Rate Schedules......Page 521
C. Filing Status......Page 522
D. Alternative Minimum Tax (AMT)......Page 523
E. Other Taxes......Page 524
B. Business Energy Credit......Page 526
H. Disabled Access Credit......Page 527
L. Credit for the Elderly and the Disabled......Page 528
M. Child and Dependent Care Credit......Page 529
O. Earned Income Credit......Page 530
R. American Opportunity Credit (AOC)......Page 531
S. Lifetime Learning Credit......Page 532
VII. Filing Requirements......Page 533
VIII. Farming Income and Expenses......Page 534
B. Choice of Courts......Page 535
F. Claims for Refund......Page 536
H. Taxpayer Penalties......Page 537
Key Terms......Page 538
Multiple-Choice Questions (1–217)......Page 539
Multiple-Choice Answers and Explanations......Page 565
Simulations......Page 588
Simulation Solutions......Page 603
A. Sales and Other Dispositions......Page 621
B. Capital Gains and Losses......Page 633
D. Gains and Losses on Business Property......Page 636
Key Terms......Page 642
Multiple-Choice Questions (1–62)......Page 644
Multiple-Choice Answers and Explanations......Page 651
Simulations......Page 657
Simulation Solutions......Page 662
A. Entity Classification......Page 667
B. Partnership Formation......Page 668
C. Partnership Income and Loss......Page 669
D. Partnership Agreements......Page 671
E. Partner's Basis in Partnership......Page 673
F. Transactions with Controlled Partnerships......Page 675
G. Taxable Year of Partnership......Page 676
I. Termination or Continuation of Partnership......Page 677
J. Sale of a Partnership Interest......Page 678
K. Pro Rata Distributions from Partnership......Page 679
M. Optional Sec. 754 Adjustment to Basis of Partnership Property......Page 682
Key Terms......Page 683
Multiple-Choice Questions (1–69)......Page 685
Multiple-Choice Answers and Explanations......Page 693
Simulations......Page 701
Simulation Solutions......Page 708
A. Transfers to a Controlled Corporation (Sec. 351)......Page 715
B. Section 1244—Small Business
Corporation (SBC) Stock......Page 716
C. Variations from Individual Taxation......Page 717
D. Affiliated and Controlled Corporations......Page 729
E. Dividends and Distributions......Page 730
F. Personal Holding Company and
Accumulated Earnings Taxes......Page 735
G. S Corporations......Page 736
H. Corporate Reorganizations......Page 744
II. Comparison of C Corporations, S
Corporations, and Partnerships......Page 747
Key Terms......Page 748
Multiple-Choice Questions (1–162)......Page 750
Multiple-Choice Answers and Explanations......Page 768
Simulations......Page 786
Simulation Solutions......Page 800
Module 39: Other Taxation Topics......Page 815
A. The Gift Tax......Page 816
B. The Estate Tax......Page 818
II. Generation-Skipping Tax......Page 820
C. Computation of Estate or Trust Taxable Income......Page 821
F. Grantor Trusts......Page 822
A. Types of Organizations......Page 823
C. Unrelated Business Income (UBI)......Page 825
A. State and Local Taxation (SALT)......Page 826
B. International Taxation......Page 828
B. Federal Tax Legislative Process......Page 831
C. Internal Revenue Code (IRC)......Page 832
D. Regulations......Page 833
A. Timing......Page 834
C. Conversion......Page 835
Key Terms......Page 836
Multiple-Choice Questions (1–70)......Page 837
Multiple-Choice Answers and Explanations......Page 845
Simulations......Page 853
Simulation Solutions......Page 858
Appendix A: Regulation Sample Examination......Page 863
Appendix B: Regulation Sample Testlet Released by AICPA......Page 889
Appendix C: 2013 Released AICPA Questions for Regulation......Page 897
Index......Page 911