- A
Create a system-assigned managed identity for ACI, assign AcrPull role to the identity, and grant it Key Vault access. Deploy ACI with VNet integration.
Why wrong: System-assigned identity is tied to ACI and cannot be used for ACR authentication.
- B
Create a user-assigned managed identity, assign it to both ACI and ACR (with AcrPull role), grant it Key Vault access, and deploy ACI with the identity and VNet integration.
User-assigned managed identity can be reused and assigned to multiple resources.
- C
Enable ACR admin account, use admin credentials in ACI, and store secrets in Key Vault with a system-assigned managed identity for ACI.
Why wrong: Admin account is not a managed identity and is less secure.
- D
Create a service principal, assign AcrPull role and Key Vault access, store the service principal secret in Key Vault, and configure ACI to use the service principal.
Why wrong: Service principal requires secret management, not managed identity.
Quick Answer
The answer is to create a user-assigned managed identity, assign it to both Azure Container Instances and Azure Container Registry with the AcrPull role, grant it Key Vault access for secret injection, and deploy the ACI instance with that identity and VNet integration. This configuration works because a user-assigned managed identity is a standalone Azure resource that can be shared across services—unlike a system-assigned identity, which is tied to a single resource and cannot authenticate ACI to ACR. On the AZ-204 exam, this scenario tests your understanding of managed identity scope and the principle of least privilege; a common trap is choosing system-assigned identity, which fails when the same identity must pull from ACR and access Key Vault. Remember the mnemonic “User for Union”—user-assigned identities unite multiple Azure resources securely without credential management.
AZ-204 Implement Azure security Practice Question
This AZ-204 practice question tests your understanding of implement azure security. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 financial services company uses Azure Container Instances (ACI) to run batch processing jobs. Each job processes sensitive financial data and must use a custom container image stored in Azure Container Registry (ACR). The security requirements are: the ACI container must authenticate to ACR using a managed identity, the container must run as a non-root user, and all secrets must be injected via environment variables from Azure Key Vault using the managed identity. The ACI instance must also be deployed into a virtual network (VNet) to restrict network access. What configuration should you use?
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
Create a user-assigned managed identity, assign it to both ACI and ACR (with AcrPull role), grant it Key Vault access, and deploy ACI with the identity and VNet integration.
Option A is correct. User-assigned managed identity can be assigned to ACI and ACR, and can also be used to access Key Vault. Enabling VNet deployment restricts network access. Option B is wrong because system-assigned managed identity cannot be shared between ACI and ACR. Option C is wrong because service principal requires credential management. Option D is wrong because admin credentials are not secure.
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.
- ✗
Create a system-assigned managed identity for ACI, assign AcrPull role to the identity, and grant it Key Vault access. Deploy ACI with VNet integration.
Why it's wrong here
System-assigned identity is tied to ACI and cannot be used for ACR authentication.
- ✓
Create a user-assigned managed identity, assign it to both ACI and ACR (with AcrPull role), grant it Key Vault access, and deploy ACI with the identity and VNet integration.
Why this is correct
User-assigned managed identity can be reused and assigned to multiple resources.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Enable ACR admin account, use admin credentials in ACI, and store secrets in Key Vault with a system-assigned managed identity for ACI.
Why it's wrong here
Admin account is not a managed identity and is less secure.
- ✗
Create a service principal, assign AcrPull role and Key Vault access, store the service principal secret in Key Vault, and configure ACI to use the service principal.
Why it's wrong here
Service principal requires secret management, not managed identity.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
- Use explanations to understand the rule behind the answer.
TExam Day Tips
- Underline the problem statement mentally.
- 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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
Got this wrong? Here's your next step.
Identify which AZ-204 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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Implement Azure security — study guide chapter
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FAQ
Questions learners often ask
What does this AZ-204 question test?
Implement Azure security — This question tests Implement Azure security — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create a user-assigned managed identity, assign it to both ACI and ACR (with AcrPull role), grant it Key Vault access, and deploy ACI with the identity and VNet integration. — Option A is correct. User-assigned managed identity can be assigned to ACI and ACR, and can also be used to access Key Vault. Enabling VNet deployment restricts network access. Option B is wrong because system-assigned managed identity cannot be shared between ACI and ACR. Option C is wrong because service principal requires credential management. Option D is wrong because admin credentials are not secure.
What should I do if I get this AZ-204 question wrong?
Identify which AZ-204 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 20, 2026
This AZ-204 practice question is part of Courseiva's free Microsoft 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 AZ-204 exam.
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