After nearly two decades of federal and state accountability requirements relying on conventional standardized assessments, Virginia and several other states are moving to create more balanced approaches to statewide assessment systems that include the use of performance assessments. But Palm (2008) states, "Performance assessment can mean almost anything" (p. 3). This review of extant literature explores varying ways performance assessments are defined, characteristics of quality performance assessments, and educational outcomes associated with their use in K-12 schools. A rudimentary definition of performance assessment is established at the outset of this article to provide a foundation for undertaking the review, which includes sources from empirical, theoretical, and anecdotal literature. Drawing from the exploration of quality characteristics and evident educational outcomes, a refined definition of performance assessments is offered by way of conclusion to the article with the intent of providing some direction to current and future educators seeking to innovate assessment and accountability practices.