Google ACE Setting Up a Cloud Solution Environment Practice Question
An engineer is setting up Cloud Identity for a new domain. What is a prerequisite for creating a Cloud Identity account?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
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Domain verification
Cloud Identity requires domain verification to prove ownership. This is done via DNS TXT record or other methods.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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A G Suite account
Why it's wrong here
G Suite (now Google Workspace) is a paid collaboration suite that includes Gmail, Drive, Docs, and administrative controls for users on your domain. Cloud Identity is a distinct identity and endpoint management service available both as a free edition and as a paid edition; it provides directory, SSO, and MFA features without including any collaboration apps. Having a G Suite account is not a prerequisite—it is an optional downstream service that can consume Cloud Identity's user directory.
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A billing account
Why it's wrong here
A billing account is used for tracking and paying for Google Cloud resource consumption, such as Compute Engine or Cloud Storage, and is required only when you enable billable GCP services. Cloud Identity is a free Google service in its standard edition, so no billing account is needed to verify a domain or to create and manage users. Even if you later attach billing to a Google Cloud project, that billing account is completely separate from the Cloud Identity domain verification setup.
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Domain verification
Why this is correct
Cloud Identity requires proof that you own the custom domain (e.g., @yourdomain.com) before it can create user accounts and manage access for that domain. You must add a unique verification code as a DNS TXT record, or follow the alternate HTML file method, to prove control of the domain. Without this step, Google cannot legally or technically assign identity administration to your domain.
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An existing Google Cloud project
Why it's wrong here
A Google Cloud project is tied to resource management, quotas, and APIs, not to directory/user identity. Cloud Identity is a separate service that lives outside any single project; it operates at the organization level and is used to federate identity across Google Cloud, Workspace, and other SAML apps. You do not need to create a project first—in fact, you can set up Cloud Identity before ever using Google Cloud.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This ACE practice question is part of Courseiva's free Google Cloud certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the ACE exam.