Algebraic thinking is a top priority in mathematics classrooms today. Because elementary school teachers lay the groundwork to develop students' capacity to think algebraically, it is crucial for teachers to have a conceptual understanding of the connections between arithmetic and algebra and be confident in communicating these connections. Many preservice teachers, however, do not possess a thorough conceptual knowledge of algebra. Although they all have been exposed to basic arithmetic, their skills with and knowledge about arithmetic do not always transfer to the related content in algebra. Performance assessments can provide the structure necessary for assisting these preservice teachers in firmly establishing the arithmetic-to-algebra connection. Using three necessary components of effective learning--communication, connections, and contexts--and division as a model, the authors showcase the benefits of performance assessments in establishing these connections and therefore building a firm foundation for learning algebra. (Contains 1 table and 7 figures.)