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 (69)
✍️ Sample CAT Questions & Answers
1. An employee receives a $5,000 bonus. What is the supplemental wage withholding flat rate employers may use for federal income tax?
The IRS optional flat withholding rate for supplemental wages such as bonuses is 22% (for amounts up to $1 million).
2. On a balance sheet, which of the following is an example of a contra-asset account?
Accumulated depreciation offsets the gross value of fixed assets and is presented as a contra-asset, reducing the book value of property, plant, and equipment.
3. Which sampling method gives every item in the population an equal chance of being selected and is considered the most theoretically sound?
Simple random sampling ensures each item has an equal probability of selection, making it the most statistically rigorous approach and free from auditor bias.
4. 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.
5. A business needs accounting software that can handle transactions in USD, EUR, and GBP simultaneously. Which feature is required?
Multi-currency support allows the system to record transactions in foreign currencies and automatically apply exchange rates for reporting in the base currency.
6. Under the Electronic Federal Tax Payment System (EFTPS), when must a semi-weekly depositor submit payroll taxes for wages paid on Wednesday?
For semi-weekly depositors, taxes on wages paid Wednesday through Friday must be deposited by the following Friday.