CAT Cheat Sheet 2026

The 30 highest-yield CAT facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A company issues a convertible bond at $100 with a conversion price of $5 per share. How many shares will each bond convert into? → 20 shares
2. Under the direct write-off method for bad debts, when is bad debt expense recognized? → When a specific account is determined to be uncollectible
3. What is the purpose of Form 941? → Quarterly reporting of federal income tax, Social Security, and Medicare taxes withheld
4. What is the first step in the risk management process for Certified Accounting Technician? → Identifying potential risks and hazards
5. Which factor is most important for effective delegation in Certified Accounting Technician? → Matching tasks to team members' skills and development goals
6. Which of the following represents systematic (market) risk? → An economic recession reducing demand across all industries
7. Which of the following is a semi-variable (mixed) cost? → Telephone bill with a fixed line rental plus usage charges
8. Which of the following is classified as a financing activity in a cash flow statement? → Repayment of a long-term bank loan
9. A taxpayer sells a capital asset held for 14 months at a gain. This gain is classified as: → Long-term capital gain
10. A C corporation is subject to federal income tax at a flat rate of: → 21%
11. Which ratio measures how efficiently a company converts its fixed assets into revenue? → Fixed Asset Turnover Ratio
12. A company's beta is 1.5, the risk-free rate is 3%, and the market return is 9%. Using CAPM, what is the required return on equity? → 12%
13. What does the concept of 'independence' require from an accounting professional? → Avoiding financial or personal relationships that could bias judgment
14. Which of the following is a 'below-the-line' deduction on an individual tax return? → Charitable contribution deduction
15. A risk register typically includes all of the following EXCEPT: → Detailed audit procedures for each risk
16. In a manufacturing company, the production budget (in units) is calculated as: → Sales budget − Opening inventory + Closing inventory
17. What is the salvage value of an asset used in calculating depreciation? → The estimated residual value at the end of the asset's useful life
18. What is the role of documentation in Financial Statement Analysis for Certified Accounting Technician? → It provides an accurate record for accountability and reference
19. What is 'factoring' in accounts receivable management? → Selling accounts receivable to a third party to obtain immediate cash
20. What is a 'chart of accounts' in accounting software? → A structured list of all account codes used to categorize financial transactions
21. A company uses activity-based costing (ABC). Which of the following best describes a 'cost driver'? → A factor that causes a change in the cost of an activity
22. Which entity enforces tax regulations in the United States? → Internal Revenue Service (IRS)
23. Goodwill appears on a company's balance sheet when: → One company acquires another for more than the fair value of its net identifiable assets
24. What is the purpose of the payroll lookback period for determining deposit frequency? → To determine whether an employer is a monthly or semi-weekly depositor
25. How does collaboration enhance Corporate Finance & Investment in Certified Accounting Technician? → It brings diverse perspectives and improves outcomes
26. The Section 179 expense election allows a business to: → Immediately deduct the full cost of qualifying property in the year placed in service
27. What does a declining gross profit margin over multiple periods most likely signal? → Increasing cost of production relative to sales prices
28. In a cash flow forecast, which of the following is classified as a capital expenditure outflow? → Purchase of new machinery
29. The likelihood and potential impact of a risk event are used together to: → Prioritize risks on a risk register
30. The margin of safety represents: → The excess of budgeted sales over break-even sales