Cats definitely know their names, but there are times when I think that cats are telepathic. They will respond to things that you say out loud, but they will also respond to what you are thinking. I have seen this happen way too many times with more than one cat, not to believe it.
The two cats I have now, and I have had them since they were tiny (they are sisters from the same litter) know their names and at least one more word "wait", they have heard that since they were little, wanting the milk, left in the cereal bowl ! They also know "good kitty", or girl "bad kitty" or girl, "stop" and "no" "come" as well. Do they always listen ? No, but more times than not, they do !