Money serves as a unit of account because prices are quoted in terms of money. A pizza, for example, costs $3.

Dividends on common shares are never included in calculating EPS.

Creditors and investors do use financial performance evaluation to judge a company's past performance, but also to judge its current position and future potential and its related risk.

A - They believe trends and patterns tend to repeat themselves.
B - They believe so but they also believe fundamental analysis is not the only one.
C - they believe that security price movements occur before fundamental developments unfold.