CIRA Cheat Sheet 2026

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

1. In distressed M&A, a buyer purchasing assets through a § 363 sale receives them: → Free and clear of most liens, claims, and interests with court approval
2. What is the MOST effective way for new CIRA professionals to build competency? → Combining formal education, mentored practice, and ongoing professional development
3. Which valuation approach estimates a company's value based on the present value of its projected future cash flows? → Discounted Cash Flow (DCF)
4. What governs insolvency proceedings in the U.S.? → U.S. Bankruptcy Code
5. In restructuring, 'equitable subordination' is a doctrine that allows a court to: → Subordinate a creditor's claim due to inequitable conduct that harmed other creditors
6. What does compliance with regulations ensure? → Follow laws and avoid penalties
7. Which foundational principle is MOST important for success in Certified Insolvency & Restructuring Advisor? → Commitment to continuous learning, ethical practice, and quality outcomes
8. A restructuring advisor performing a '13-week cash flow' analysis is primarily focused on: → Near-term liquidity management and cash runway
9. What is the PRIMARY purpose of obtaining CIRA certification in Certified Insolvency & Restructuring Advisor? → To demonstrate verified competency and adherence to professional standards
10. Which of the following best describes 'enterprise value' (EV) in a restructuring analysis? → Total value of the business to all capital providers, including debt and equity
11. What documentation is MOST critical to maintain for safety compliance in the Certified Insolvency & Restructuring Advisor field? → Incident reports, training records, and inspection logs
12. When a CIRA professional identifies a potential regulatory violation, the CORRECT first step is to: → Document the violation and report through proper channels
13. What is the BEST way for a Certified Insolvency & Restructuring Advisor professional to stay current with regulatory changes? → Monitor regulatory bodies, attend CE, and participate in professional associations
14. Which act focuses on protecting consumer financial privacy? → Gramm-Leach-Bliley Act
15. Which of the following best describes 'Debtor-in-Possession' (DIP) financing? → Post-petition financing that typically receives super-priority status
16. When a CIRA professional faces pressure to compromise professional standards, the BEST response is to: → Document the pressure and uphold professional standards
17. Which party typically files a 'proof of claim' in a Chapter 11 bankruptcy case? → A creditor asserting a right to payment from the debtor's estate
18. Which risk management approach is MOST effective for CIRA professionals when evaluating potential workplace hazards? → Proactive hazard identification and assessment
19. Which regulatory requirement is UNIVERSAL across all Certified Insolvency & Restructuring Advisor practice settings? → Maintaining current certification and continuing education
20. Why is preparation important in workouts? → Understand financials and points
21. Which test does the Bankruptcy Code apply to confirm that a reorganization plan is feasible? → The plan must not be likely to be followed by liquidation or further reorganization
22. Which of the following is NOT a recognized test of insolvency under U.S. law? → Market capitalization insolvency (stock price below book value)
23. What distinguishes a Certified Insolvency & Restructuring Advisor certified professional from a non-certified practitioner? → Certification validates competency through standardized assessment against benchmarks
24. When a CIRA uses the 'net realizable value' (NRV) method for inventory in distress, which adjustment is most common? → Reduce book value to reflect expected selling price less costs to complete and sell
25. When a CIRA professional identifies a potential regulatory violation, the CORRECT first step is to: → Document the violation and report through proper channels
26. When conducting a risk assessment for CIRA operations, which factor should receive the HIGHEST priority? → Probability and severity of potential harm
27. Which of the following is NOT typically included in a 'minimum cash balance' requirement in a DIP credit agreement? → Equity distribution to shareholders
28. Which EBITDA multiple adjustment is most appropriate when valuing a distressed company relative to a healthy peer group? → Apply a discount to reflect higher risk, illiquidity, and uncertainty
29. How does financial analysis aid insolvency advisors? → Identify strengths and weaknesses
30. A CIRA professional discovers a conflict of interest in a current assignment. What is the MOST ethical course of action? → Disclose the conflict immediately and recuse if necessary