AICPA Exam CPA-Regulation Topic 2 Question 15 Discussion

Actual exam question for AICPA's CPA Regulation exam

Question #: 15
Topic #: 2

[All CPA Regulation Questions]

Which of the following statements is the best definition of real property?

AReal property is only land.

BReal property is all tangible property including land.

CReal property is land and intangible property in realized form.

DReal property is land and everything permanently attached to it.

Show Suggested Answer

Suggested Answer: D

Choice 'd' is correct. Real property includes land and all items permanently affixed to the land (e.g., buildings, paving, etc.)

Choice 'a' is incorrect. Real property includes more than just the land (as per the Explanation: above); it includes all items permanently affixed to land.

Choice 'b' is incorrect. 'All' tangible property could include moveable personal property and is therefore, incorrect.

Choice 'c' is incorrect. 'Intangible property in realized form' is a distracter and a contradiction in terms.

by Nichelle at May 07, 2022, 04:19 AM

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