The purpose of the study was to determine the characteristics of the 10 best school districts in Arkansas for 1992-93. State legislation (Act 688) of 1989 established an Office of Accountability within the State Department of Education that would provide, among other things, an annual school report card. The school report card assesses the performance of schools/school districts serving students in grades K-12 inclusive, with comparable characteristics such as: (1) socio-economic characteristics; (2) size of districts; (3) test scores on nationally normed tests; (4) number of students taking remedial courses in high school and college; and (5) per pupil expenditure on administrative, athletic, and gifted and talented programs. A general linear model was used for the comparison. Data support the conclusion that, in Arkansas, the ideal school district size is probably larger than 799 and less than 8,999. Medium-sized schools did the most effective job in promoting learning with the least risk of dropouts or nonattendance. Seven tables present analysis results. (Contains 4 references.) (SLD)