Table Of Content

4Wiley 1C PA e x c e l® 0 E X A M R E V I E W 2 S T U DY G U I D E ffffiirrss..iinndddd ii 1100//2299//22001133 22::1188::0088 PPMM ffffiirrss..iinndddd iiii 1100//2299//22001133 22::1188::0088 PPMM 4 Wiley 1 C PA e x c e l® 0 EXAM REVIEW ST U DY G U I D E 2 REGULATION O. Ray Whittington, CPA, PhD ffffiirrss..iinndddd iiiiii 1100//2299//22001133 22::1188::0088 PPMM The following items, copyright © by the American Institute of Certifi ed Public Accountants, Inc., are reprinted (or adapted) with permission. 1. Material from Uniform CPA Examination Questions and Answers, 1978 through 2000. 2. Information for Uniform CPA Examination Candidates, Board of Examiners, 2000. 3. Defi nitions, examples, etc. from The Code of Professional Conduct. Material from the Certifi ed Internal Auditor Examination, Copyright © 1994 through 1997 by the Institute of Internal Auditors, Inc., are reprinted and/or adapted with permission. Material from the Certifi ed Management Accountant Examinations, Copyright © 1993 through 1997 by the Institute of Certifi ed Management Accountants, are reprinted and/or adapted with permission. Material adapted, with permission, from Writing for Accountants, Aletha Hendrickson, South-Western Publishing Co., 1993. Copyright © 2014 by John Wiley & Sons, Inc. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. 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ISBN 978-1-118-73404-9 (paperback); 978-1-118-86368-8 (ebk); 978-1-118-86369-5 (ebk) Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 ffffiirrss..iinndddd iivv 1100//2299//22001133 22::1188::0088 PPMM CONTENTS Preface vii About the Authors ix About the Contributors ix INTRODUCTION 1 Chapter 1: Beginning Your CPA Review Program 3 Chapter 2: Examination Grading 17 Chapter 3: The Solutions Approach 19 Chapter 4: Taking the Examination 27 Chapter 5: Exam Content Overview 31 PROFESSIONAL RESPONSIBILITIES AND BUSINESS LAW 39 Module 23: Professional and Legal Responsibilities 41 Module 24: Federal Securities Acts 87 Module 25: Business Structure 119 Module 26: Contracts 169 Module 27: Sales 215 Module 28: Commercial Paper 249 Module 29: Secured Transactions 293 Module 30: Bankruptcy 313 Module 31: Debtor-Creditor Relationships 343 Module 32: Agency 365 Module 33: Regulation of Business Employment, Environment, and Antitrust 383 Module 34: Property 421 FEDERAL TAXATION 457 Module 35: Individual Taxation 459 Module 36: Transactions in Property 609 Module 37: Partnership Taxation 655 Module 38: Corporate Taxation 703 Module 39: Other Taxation Topics 803 v ffttoocc..iinndddd vv 1100//2299//22001133 22::2288::2277 PPMM APPENDICES Appendix A: Regulation Sample Examination 851 Appendix B: Regulation Sample Testlet Released by AICPA 877 Appendix C: 2013 Released AICPA Questions for Regulation 885 INDEX 899 vi ffttoocc..iinndddd vvii 1100//2299//22001133 22::2288::2277 PPMM PREFACE Passing the CPA exam upon your fi rst attempt is possible! The Wiley CPAexcel Exam Review 2014 Study Guide: Regulation preparation materials provide you with the necessary materials (visit our website at www.wiley.com/cpa for more information). It’s up to you to add the hard work and commitment. Together we can beat the pass rate on each section of about 50% All Wiley CPA products are continuously updated to provide you with the most comprehensive and complete knowledge base. Choose your products from the Wiley preparation materials and you can proceed confi dently. You can select support materials that are exam-based and user-friendly. You can select products that will help you pass! Remaining current is one of the keys to examination suc- cess. Here is a list of what’s new in the Wiley CPAexcel Exam Review 2014 Study Guide: Regulation text: • The new AICPA Content Specifi cation Outlines on Regulation for the Computerized CPA Examination beginning in 2014 • AICPA questions released in 2013 • Tax law changes for 2012 (tested on the 2013 examination) • Coverage of latest business law legislation D ’ ON T FORGET TO • New outlines and questions for material tested in 2014 VISIT OUR WEBSITE AT . . / The objective of this work is to provide you with the knowledge WWW WILEY COM CPA to pass the Regulation portion of the Uniform Certifi ed Public FOR SUPPLEMENTS Accounting (CPA) Exam. The text is divided up into 17 areas . AND UPDATES of study called modules. Each module contains written text with discussion, examples, and demonstrations of the key exam concepts. Following each text area, actual American Institute of Certifi ed Public Accountants (AICPA) unoffi cial questions and answers are presented to test your knowledge. We are indebted to the AICPA for permission to reproduce and adapt examination materials from past examinations. Author constructed questions and task-based simulations are provided for new areas or areas that require updating. All author constructed questions and task- based simulations are modeled after AICPA question formats. The multiple-choice questions are grouped into topical areas, giving candidates a chance to assess their areas of strength and weakness. Selection and inclusion of topical content is based upon current AICPA Content Specifi cation Outlines. Only test- able topics are presented. If the CPA exam does not test it, this text does not present it. The CPA exam is one of the toughest exams you will ever take. It will not be easy. But if you follow our guidelines and focus on your goal, you will be thrilled with what you can accomplish. —Ray Whittington November 2013 vii ffpprreeff..iinndddd vviiii 1100//2299//22001133 22::3333::3355 PPMM ffpprreeff..iinndddd vviiiiii 1100//2299//22001133 22::3333::3355 PPMM