Suppose you work for a company called Greenwood Sky Divers as a sky-diving instructor. Since you have your pilot’s license, you also give flying lessons on the side. You and the owner of Greenwood Sky Divers both belong to a local club, the Greenwood Eagles, whose members get together for sky dives on weekends. Greenwood Sky Divers is a sole proprietorship that has been in business for six years. The owner of the company regularly reviews financial reports, and the company’s accountant prepares end-of-the-year reports to compare results from one year to the next. 

Decide what information in this paragraph is relevant to accounting for Greenwood Sky Divers. Identify the accounting assumptions for Greenwood, and give an example of each assumption from the information given here.