Create an Office 365 "Cloud Assignment"
Create a document using Word or Powerpoint and save it to your OneDrive. Create a "Cloud Assignment" in Canvas and each student will get their own copy of that document that they can edit and later submit. This video shows how to set it up and what the student will see:
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Create Word or Powerpoint documents that students can collaborate on
You can also create a brand new document in Canvas using the Office 365 "Collaboration" feature and then assign specific students to collaborate on the document together. This video shows how that is set up and what the students will see: