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. Which analytical test is most effective for spotting ghost employees on a payroll? → Matching payroll records to HR files and flagging shared bank accounts or addresses
12. 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
13. What is the purpose of a litigation strategy? → Plan and guide case decisions
14. Which type of law typically governs financial disputes? → Civil law
15. What does the income statement report? → Revenues, expenses, and profits
16. 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
17. When does a party's duty to preserve potentially relevant evidence, including ESI, generally arise? → When litigation is reasonably anticipated
18. A financial expert retained solely to consult with counsel without testifying is protected from disclosure under which doctrine? → Attorney work-product doctrine
19. Why is client communication critical in litigation? → Keep client informed of strategy and risks
20. 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
21. What is the first step in a financial lawsuit? → File a complaint to the court
22. What is the primary goal of forensic accounting? → Detect fraud and support litigation
23. Under FRCP 37(e)(2), what must a court find before giving an adverse-inference jury instruction for lost ESI? → The party acted with intent to deprive another party of the information
24. The Daubert standard replaced which earlier expert admissibility test in federal courts? → Frye general acceptance test
25. 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
26. A company over-accrues restructuring reserves in a strong year and reverses them in later weak years. This practice is best described as: → Cookie jar reserves used for income smoothing
27. What is goodwill in financial reporting? → Intangible asset from acquisitions
28. Under FRCP 9(b), how must a plaintiff plead a claim of securities or investment fraud? → With particularity as to the circumstances constituting fraud
29. 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
30. What is the primary method of valuing a publicly traded company? → Market capitalization