- A
Define output values in the networking configuration and they will be automatically available in the compute configuration.
Why wrong: Output values are only visible in the same configuration; they are not automatically shared across configurations.
- B
Run 'terraform output' on the networking state and save the values to a JSON file, then use 'terraform_remote_state' to read them.
Why wrong: The terraform_remote_state data source reads directly from the state backend; there is no need to manually export to a file.
- C
Use a 'data' 'terraform_remote_state' block in the compute configuration to read the networking state.
This data source retrieves the outputs from the specified remote state, enabling cross-configuration references.
- D
Hardcode the subnet IDs from the networking configuration into the compute configuration.
Why wrong: Hardcoding creates maintenance issues and duplicates data; it is not a best practice.
Quick Answer
The correct approach is to use a `data "terraform_remote_state"` block in the compute configuration to read the networking state. This Terraform data source retrieves root-level output values directly from another configuration’s state file stored in the AzureRM backend, allowing you to share state outputs between Terraform configurations without duplicating data or manually exporting values. On the HashiCorp Terraform Associate TF-003 exam, this question tests your understanding of state management and cross-configuration dependencies, often appearing as a scenario where a team splits monolithic infrastructure into separate state files. A common trap is trying to use hard-coded values or `terraform output` commands, but the `terraform_remote_state` data source ensures the compute configuration always pulls the latest networking outputs dynamically. Memory tip: think “remote_state” as a live bridge—it connects state files like a network cable, not a static file copy.
TF-003 Implement and maintain state Practice Question
This TF-003 practice question tests your understanding of implement and maintain state. 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.
An organization uses Terraform with the AzureRM backend. The team recently split a large configuration into multiple smaller configurations, each with its own state file. They want to share outputs from one configuration (networking) as inputs to another (compute). Which approach should they use to reference the networking state from the compute configuration without duplicating data?
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
Use a 'data' 'terraform_remote_state' block in the compute configuration to read the networking state.
Option C is correct because the `terraform_remote_state` data source allows one Terraform configuration to read the root-level output values from another configuration's state file stored in the AzureRM backend. This enables sharing of networking outputs (e.g., subnet IDs) into the compute configuration without duplicating data or manually exporting values. The data source retrieves the state directly from the configured backend, ensuring the compute configuration always uses the latest networking outputs.
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.
- ✗
Define output values in the networking configuration and they will be automatically available in the compute configuration.
Why it's wrong here
Output values are only visible in the same configuration; they are not automatically shared across configurations.
- ✗
Run 'terraform output' on the networking state and save the values to a JSON file, then use 'terraform_remote_state' to read them.
Why it's wrong here
The terraform_remote_state data source reads directly from the state backend; there is no need to manually export to a file.
- ✓
Use a 'data' 'terraform_remote_state' block in the compute configuration to read the networking state.
Why this is correct
This data source retrieves the outputs from the specified remote state, enabling cross-configuration references.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Hardcode the subnet IDs from the networking configuration into the compute configuration.
Why it's wrong here
Hardcoding creates maintenance issues and duplicates data; it is not a best practice.
Common exam traps
Common exam trap: answer the scenario, not the keyword
HashiCorp often tests the misconception that `terraform output` or automatic sharing between configurations is sufficient, but the correct approach is always to use the `terraform_remote_state` data source to read outputs from a separate state file.
Trap categories for this question
Command / output trap
Output values are only visible in the same configuration; they are not automatically shared across configurations.
Detailed technical explanation
How to think about this question
The `terraform_remote_state` data source uses the configured backend (e.g., AzureRM) to fetch the state file, then exposes the root-level outputs as attributes (e.g., `data.terraform_remote_state.networking.outputs.subnet_id`). Under the hood, it performs a state lookup using the backend's API, which may involve authentication and access control (e.g., Azure RBAC). A subtle behavior is that if the remote state is locked or inaccessible, the data source will fail at plan time, so teams often use `terraform_remote_state` with a separate backend configuration to avoid circular dependencies.
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 network engineer segments a warehouse floor into three subnets: 20 scanners, 5 printers, and 2 management hosts. Picking the wrong mask wastes addresses or leaves too few usable hosts. Exam questions test whether you can apply CIDR notation, calculate block size, and identify the correct usable-host range for a given prefix.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this TF-003 question test?
Implement and maintain state — This question tests Implement and maintain state — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use a 'data' 'terraform_remote_state' block in the compute configuration to read the networking state. — Option C is correct because the `terraform_remote_state` data source allows one Terraform configuration to read the root-level output values from another configuration's state file stored in the AzureRM backend. This enables sharing of networking outputs (e.g., subnet IDs) into the compute configuration without duplicating data or manually exporting values. The data source retrieves the state directly from the configured backend, ensuring the compute configuration always uses the latest networking outputs.
What should I do if I get this TF-003 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
This TF-003 practice question is part of Courseiva's free HashiCorp 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 TF-003 exam.
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