This AZ-204 practice question tests your understanding of implement azure security. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 API receives JWT access tokens from Microsoft Entra ID. Which two token properties should the API validate before accepting a request?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Issuer and signature are valid for the trusted tenant
Option A is correct because the API must validate that the JWT's issuer (iss) claim matches the trusted tenant's issuer URL (e.g., https://login.microsoftonline.com/{tenant-id}/v2.0) and that the token's cryptographic signature is valid, ensuring the token was issued by Microsoft Entra ID and hasn't been tampered with. This prevents token forgery and tokens from untrusted tenants.
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.
✓
Issuer and signature are valid for the trusted tenant
Why this is correct
Issuer and signature validation confirms the token came from the expected identity provider.
Related concept
Read the scenario before looking for a memorised answer.
✗
The user's display name is present
Why it's wrong here
Display name is not a security validation control.
✓
Token audience matches the API application ID URI or client ID
Why this is correct
The audience proves the token was issued for this API.
Related concept
Read the scenario before looking for a memorised answer.
✗
The token was sent in a query string
Why it's wrong here
Bearer tokens should not be accepted because they appear in query strings.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse optional user claims (like display name) with mandatory security claims (iss, aud, signature), or think token transport method (query string vs. header) is a validation property rather than a security best practice.
Detailed technical explanation
How to think about this question
Under the hood, JWT validation involves checking the 'iss' claim against the OpenID Connect discovery document's issuer endpoint, verifying the RSA or ECDSA signature using the public keys from the JWKS URI (e.g., https://login.microsoftonline.com/common/discovery/v2.0/keys), and ensuring the 'aud' claim matches the API's registered application ID URI or client ID. A subtle behavior is that the 'aud' claim must be an exact string match; if the API uses a custom scope, the token's 'aud' will be the API's client ID, not the scope URI.
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 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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-204 question in full detail.
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: Issuer and signature are valid for the trusted tenant — Option A is correct because the API must validate that the JWT's issuer (iss) claim matches the trusted tenant's issuer URL (e.g., https://login.microsoftonline.com/{tenant-id}/v2.0) and that the token's cryptographic signature is valid, ensuring the token was issued by Microsoft Entra ID and hasn't been tampered with. This prevents token forgery and tokens from untrusted tenants.
What should I do if I get this AZ-204 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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Question Discussion
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