CFL Cheat Sheet 2026

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

1. What does EBITDA stand for? → Earnings Before Interest, Taxes, Depreciation, and Amortization
2. What occurs during the discovery phase of litigation? → Evidence and information exchange
3. When adjusting historical damages for the time value of money, pre-judgment interest is typically calculated from: → The date the injury or loss occurred to the date of judgment
4. In commercial real estate disputes, a 'time is of the essence' clause means that: → Failure to meet deadlines constitutes a material breach justifying rescission
5. The 'economic loss rule' in commercial litigation generally bars recovery in tort for: → Purely economic losses unaccompanied by physical injury or property damage
6. A financial litigator representing a creditors' committee in Chapter 11 would primarily focus on which objective? → Maximizing the recovery for unsecured creditors in the reorganization plan
7. What does a motion for summary judgment request? → Decide the case without trial
8. What organization sets international accounting standards? → IASB
9. Under Bankruptcy Code Section 523(a), which of the following debts is NOT dischargeable in a Chapter 7 individual bankruptcy? → Debts arising from fraud or false financial statements
10. What is the first phase of a fraud investigation? → Planning and preliminary analysis
11. In a securities class action, the lead plaintiff is selected based primarily on which criterion under the PSLRA? → The member with the largest financial interest in the relief sought
12. What is the purpose of a litigation strategy? → Plan and guide case decisions
13. Which type of law typically governs financial disputes? → Civil law
14. What does the income statement report? → Revenues, expenses, and profits
15. The Uniform Commercial Code's 'perfect tender rule' under Section 2-601 allows a buyer to reject goods that: → Fail in any respect to conform to the contract
16. A financial expert retained solely to consult with counsel without testifying is protected from disclosure under which doctrine? → Attorney work-product doctrine
17. Why is client communication critical in litigation? → Keep client informed of strategy and risks
18. The 'before and after' method for calculating lost profits compares the plaintiff's financial performance: → During the wrongful conduct period versus pre- and post-wrong periods
19. Under Section 547 of the Bankruptcy Code, within what time period before the bankruptcy filing may preferential payments to non-insider creditors be avoided? → 90 days before filing
20. What is the first step in a financial lawsuit? → File a complaint to the court
21. What is the primary goal of forensic accounting? → Detect fraud and support litigation
22. The Daubert standard replaced which earlier expert admissibility test in federal courts? → Frye general acceptance test
23. The SEC's enforcement authority under Section 21(d) of the Exchange Act allows it to seek all of the following EXCEPT: → Criminal incarceration directly through SEC proceedings
24. What is goodwill in financial reporting? → Intangible asset from acquisitions
25. The 'total profits' approach versus the 'apportionment' approach in copyright infringement damages differs primarily in that apportionment: → Limits recovery to the portion of profits attributable to the infringing elements
26. What is the primary method of valuing a publicly traded company? → Market capitalization
27. Under Federal Rule of Evidence 702, an expert witness must base their opinion on sufficient facts or data AND apply principles and methods: → Reliably to the facts of the case
28. The statute of limitations for a private Section 10(b) securities fraud claim under 28 U.S.C. § 1658(b) is: → 2 years from discovery, no more than 5 years from violation
29. What type of court order is specifically designed to freeze a defendant's assets to prevent dissipation pending the outcome of litigation? → Mareva injunction (freezing order)
30. What is a contingency plan in case management? → Backup plans for unexpected developments