How to display wordpress categories

wp-display-categories.php

<?php
            // How to display categories
            $args = array(
              'taxonomy' => 'test',
              'orderby' => 'name',
              'order'   => 'ASC'
            );
            
            $cats = get_categories($args);
            
            echo '<ul class="terms">';
            foreach($cats as $cat) { ?>
              <li><a href="<?php echo get_category_link( $cat->term_id ) ?>">
                  <?php echo $cat->name; ?>
                  </a></li>
              <?php
            }
            echo '</ul>';
        ?>