One of the toughest portion of the CPA exam is what is known as the REG portion. This portion of the exam test your knowledge of federal taxation, ethnics, professional and legal responsibilities, and business law. It is almost like you are being tested to become a lawyer some people joke. Well the fact of the matter is that its not as tough as the bar exam but it is hard.
The largest portion of this section of the CPA exam covers business law and your knowledge of federal tax laws. The questions will cover agency concepts, contracts, debtor and creditor relationship, the uniform commercial code, and applicable governmental regulations.
Perhaps the most logical thing that you need to know and will be test to become a CPA is your knowledge of the tax code and its application. Such things like gross income, exclusions, adjustments, deductions, exemptions, profits and losses, the tax reporting requirements of different legal entities and trust.
So in reality, although there are some ethics questions and business law questions, it all really centers around the things that you are expected to know about – taxes and accounting procedures. So don’t psych yourself out.
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