CAT Study Guide 2026
Everything you need to pass the CAT exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CAT Exam Format at a Glance
📚 CAT Topics to Study (21)
✍️ Sample CAT Questions & Answers
1. When a CAT realizes they lack the expertise to complete an assigned task competently, they should:
Professional competence requires acknowledging skill gaps and obtaining necessary guidance before proceeding.
2. What is the purpose of a trial balance in bookkeeping?
A trial balance is a list of all the general ledger accounts, showing their debit or credit balances at a specific point in time. Its primary purpose is to verify that the total of all debits equals the total of all credits, confirming the mathematical accuracy of the double-entry bookkeeping system. This is a crucial step before preparing formal financial statements.
3. Which financial ratio measures how efficiently a company collects its accounts receivable?
The accounts receivable turnover ratio (net credit sales ÷ average AR) indicates how many times receivables are collected in a period.
4. How is inventory turnover ratio calculated?
Inventory turnover measures how many times inventory is sold and replaced in a period, using COGS divided by average inventory.
5. Why must businesses maintain proper tax records?
Maintaining proper tax records is a legal requirement for businesses and individuals. These records provide essential evidence of income, expenses, and deductions, which are crucial for accurately preparing tax returns and demonstrating compliance with tax laws. Furthermore, well-maintained records greatly facilitate any potential audits by tax authorities, ensuring transparency and accountability.
6. How does collaboration enhance Financial Statement Analysis in Certified Accounting Technician?
Collaboration brings together different viewpoints and expertise, leading to better decision-making and outcomes.