- A
Run `gcloud auth application-default login` to generate ADC credentials.
This command generates the `application_default_credentials.json` file that client libraries discover automatically via the ADC lookup chain.
- B
Set the `GOOGLE_CLOUD_PROJECT` environment variable to the project ID.
Why wrong: This sets the project context but does not provide authentication credentials for the client library.
- C
Download a service account JSON key and set `GOOGLE_APPLICATION_CREDENTIALS`.
Why wrong: This is a valid but more complex approach; the question asks for the step needed given `gcloud auth login` was already run — ADC login is simpler and preferred for local dev.
- D
Run `gcloud config set account` to switch to the correct account.
Why wrong: Switching the active gcloud account does not affect ADC credentials stored separately for client libraries.
Quick Answer
The answer is to run `gcloud auth application-default login`. This is correct because Application Default Credentials (ADC) require a separate credential file—typically stored at `~/.config/gcloud/application_default_credentials.json`—that is distinct from the user credentials set by `gcloud auth login`. While `gcloud auth login` authenticates the gcloud CLI tool itself, ADC does not read those credentials; it looks specifically for the application-default credentials file to authorize API calls like those to the Cloud Translation API. On the Google Associate Cloud Engineer exam, this distinction is a frequent trap: many candidates assume that logging in with `gcloud auth login` is sufficient for local development, but the exam tests your understanding that ADC needs its own dedicated authentication flow. A reliable memory tip is to think of it as “two separate logins”—one for the CLI tool, one for your code’s SDK—so always remember the extra `application-default` command when setting up local ADC.
Google ACE Setting up a cloud solution environment Practice Question
This ACE practice question tests your understanding of setting up a cloud solution environment. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A developer needs to use Application Default Credentials (ADC) in a local development environment to call the Cloud Translation API. They have already run `gcloud auth login`. What additional step is required to make ADC work correctly?
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
Run `gcloud auth application-default login` to generate ADC credentials.
Option A is correct because `gcloud auth application-default login` creates a special credential file (typically at `~/.config/gcloud/application_default_credentials.json`) that Application Default Credentials (ADC) uses to authenticate API calls. While `gcloud auth login` sets up user credentials for gcloud CLI commands, ADC does not use those credentials directly; it requires its own separate credential file. Running this command ensures that the local development environment can authenticate to the Cloud Translation API via ADC without additional configuration.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Run `gcloud auth application-default login` to generate ADC credentials.
Why this is correct
This command generates the `application_default_credentials.json` file that client libraries discover automatically via the ADC lookup chain.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Set the `GOOGLE_CLOUD_PROJECT` environment variable to the project ID.
Why it's wrong here
This sets the project context but does not provide authentication credentials for the client library.
- ✗
Download a service account JSON key and set `GOOGLE_APPLICATION_CREDENTIALS`.
Why it's wrong here
This is a valid but more complex approach; the question asks for the step needed given `gcloud auth login` was already run — ADC login is simpler and preferred for local dev.
- ✗
Run `gcloud config set account` to switch to the correct account.
Why it's wrong here
Switching the active gcloud account does not affect ADC credentials stored separately for client libraries.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Google Cloud often tests the distinction between `gcloud auth login` (for CLI authentication) and `gcloud auth application-default login` (for ADC), leading candidates to mistakenly think the former is sufficient for ADC-based API calls.
Detailed technical explanation
How to think about this question
ADC works by checking the `GOOGLE_APPLICATION_CREDENTIALS` environment variable first, then the gcloud ADC credential file, and finally the metadata server on Google Cloud resources. The `gcloud auth application-default login` command creates a credential file that contains a refresh token, allowing ADC to obtain access tokens dynamically without exposing a long-lived service account key. This approach is preferred in local development because it avoids the security risk of storing service account keys and automatically handles token refresh.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this ACE question test?
Setting up a cloud solution environment — This question tests Setting up a cloud solution environment — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Run `gcloud auth application-default login` to generate ADC credentials. — Option A is correct because `gcloud auth application-default login` creates a special credential file (typically at `~/.config/gcloud/application_default_credentials.json`) that Application Default Credentials (ADC) uses to authenticate API calls. While `gcloud auth login` sets up user credentials for gcloud CLI commands, ADC does not use those credentials directly; it requires its own separate credential file. Running this command ensures that the local development environment can authenticate to the Cloud Translation API via ADC without additional configuration.
What should I do if I get this ACE question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 30, 2026
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