The principle purpose of this article serves a number of purposes. Among them, it provides instructors with a tested financial statement report project. It also helps students to develop higher-level learning skills. In addition, the project provides an opportunity for students to apply their basic accounting knowledge to the analysis and use of the basic financial statements. The article also summarizes and explains the importance of key ingredients in creating a successful student-oriented project such as (1) planning and executing the project, (2) building an active learning environment and time line, and (3) emphasizing the importance of group work in completing the project. The article also discusses some simple dos and don'ts in the constructing and administering of the annual financial report project for introductory accounting students.