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. A company's trailing twelve-month (TTM) EBITDA is best calculated using which approach? → Last fiscal year plus YTD current period minus YTD prior period
4. Which valuation approach estimates a company's value based on the present value of its projected future cash flows? → Discounted Cash Flow (DCF)
5. What governs insolvency proceedings in the U.S.? → U.S. Bankruptcy Code
6. 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
7. What does compliance with regulations ensure? → Follow laws and avoid penalties
8. When calculating free cash flow to the firm (FCFF) for a distressed company, which item must be ADDED BACK to net income? → Depreciation and amortization
9. Which foundational principle is MOST important for success in Certified Insolvency & Restructuring Advisor? → Commitment to continuous learning, ethical practice, and quality outcomes
10. What is the primary purpose of the absolute priority rule in bankruptcy reorganizations? → To require that senior classes be paid in full before junior classes receive any value
11. Which statement best describes the automatic stay under Section 362 of the Bankruptcy Code? → It is triggered upon filing and halts most collection actions against the debtor
12. A restructuring advisor performing a '13-week cash flow' analysis is primarily focused on: → Near-term liquidity management and cash runway
13. Under a Chapter 11 plan, 'cramdown' allows the court to confirm a plan over the objection of a dissenting class if: → The plan is fair and equitable and does not unfairly discriminate
14. What is the PRIMARY purpose of obtaining CIRA certification in Certified Insolvency & Restructuring Advisor? → To demonstrate verified competency and adherence to professional standards
15. 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
16. What documentation is MOST critical to maintain for safety compliance in the Certified Insolvency & Restructuring Advisor field? → Incident reports, training records, and inspection logs
17. Which federal agency administers the U.S. Trustee Program, which oversees bankruptcy case administration? → Department of Justice
18. When a CIRA professional identifies a potential regulatory violation, the CORRECT first step is to: → Document the violation and report through proper channels
19. Which ratio is most commonly used to assess working capital adequacy in a distressed company? → Current ratio
20. Which of the following is a primary purpose of a 'variance analysis' in a 13-week cash flow report? → To compare actual cash flows against forecast and explain material deviations
21. 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
22. A distressed company reports negative working capital. This is MOST concerning when combined with: → Accelerating maturity of current debt with no refinancing source
23. Which act focuses on protecting consumer financial privacy? → Gramm-Leach-Bliley Act
24. Which of the following best describes 'Debtor-in-Possession' (DIP) financing? → Post-petition financing that typically receives super-priority status
25. When a CIRA professional faces pressure to compromise professional standards, the BEST response is to: → Document the pressure and uphold professional standards
26. In the context of cross-border insolvency, which international framework has the U.S. adopted to coordinate multinational bankruptcy proceedings? → The UNCITRAL Model Law on Cross-Border Insolvency (Chapter 15)
27. 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
28. Which risk management approach is MOST effective for CIRA professionals when evaluating potential workplace hazards? → Proactive hazard identification and assessment
29. When evaluating a distressed company's liquidity, a restructuring advisor would be most concerned about which combination of conditions? → High DSO and low days payable outstanding (DPO)
30. Which regulatory requirement is UNIVERSAL across all Certified Insolvency & Restructuring Advisor practice settings? → Maintaining current certification and continuing education