Free AICPA AICPA-CPA Exam Questions

Become AICPA Certified with updated AICPA-CPA exam questions and correct answers

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Total 205 Questions | Updated On: Mar 06, 2026

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Question 1

Sam rents his second home. During the current year, he reported a $40,000 net loss from the rental. Assume Sam actively participates in the rental activity and no phase-out limitations apply. What is the greatest amount of the rental loss that Sam can deduct against ordinary income in the current year?

A : $25,000

B : $0

C : $40,000

D : $5,000

Answer: A

Question 2

Which TWO of the following errors would cause the total of the debit column and the total of the credit column of a trial balance not to agree? (1) A transposition error was made when entering a sales invoice into the sales day book (2) A cheque received from a customer was credited to cash and correctly recognised in receivables (3) A purchase of non-current assets was omitted from the accounting records (4) Rent received was included in the trial balance as a debit balance

A : 1 and 2

B : 1 and 3

C : 2 and 3

D : 2 and 4

Answer: D

Question 3

Knickerbocker Corp. issued $20 million of long-term debt in the current year. What is a major advantage to Knickerbocker with the debt issuance?

A : The reduced earnings per share possible through financial leverage.

B : The relatively low after-tax cost due to the interest deduction.

C : The increased financial risk resulting from the use of the debt.

D : The reduction of the shareholders' control over the company.

Answer: B

Question 4

Drillfast is a drilling corporation with operations at oil rigs around the world. For the 2014 annual report, which business segment should be reported as an operating segment?

A : South American segment, which contributes 8% of total revenues, 5% of profits and accounts for 9% of assets. South American operating manager reports to the chief operating officer.

B : African segment, which contributes 9% of the company’s assets, 16% of total revenues, and 18% of profits. The African operating manager reports to the British operating manager.

C : Australian segment, which contributes 10% of total revenues, 2% of assets, and 4% of profits. The Australian manager reports to the chief operating officer.

D : Texas based corporate headquarters

Answer: C

Question 5

The price elasticity of demand for widgets is 1.1 and the quantity demanded is 5,000 units. The price increases by 8%. What is the new quantity demanded?

A : 440

B : 4,560

C : 5,440

D : 4,780

Answer: B

Page: 1 / 41

Total 205 Questions | Updated On: Mar 06, 2026

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