Fundamental Concepts of Algebra. Basics of Algebra cover the simple operation of mathematics like addition, subtraction, multiplication, and division involving both constant as well as variables. For example, x+10 = 0. This introduces an important algebraic concept known as equations. Algebra is based on the concept of unknown values called variables, unlike arithmetic which is based entirely on known number values. This lesson introduces an important algebraic concept known as the Equation. The idea is that an equation represents a scale such as the one shown on the right.