Question 1mediummultiple choice
Full question →mediummultiple choiceObjective-mapped
You are building an Azure Logic App that calls an external REST API secured with the OAuth 2.0 client credentials flow. You have registered an app in Microsoft Entra ID with client ID and client secret stored in Azure Key Vault. The Logic App uses a system-assigned managed identity with Get permission on the secret. Which action should you use in the Logic App designer to authenticate to the API?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
A
Best answer
HTTP action with 'Active Directory OAuth' authentication type, referencing the client ID and client secret
This correctly implements the client credentials grant by providing the client ID and secret in the HTTP request.
B
Distractor review
HTTP action with 'Managed Identity' authentication type
Managed identity authentication is used to authenticate to Azure services, not to external third-party APIs that require client credentials flow.
C
Distractor review
Invoke an API with OAuth predefined connector
There is no generic 'Invoke an API with OAuth' connector; you must use the HTTP action with proper authentication.
D
Distractor review
HTTP action with 'Basic' authentication and pass the secret as password
Basic authentication is not the same as OAuth 2.0 client credentials; it does not use Microsoft Entra ID tokens.
Common exam trap
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.
Technical deep dive
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.
Related practice questions
Related AZ-204 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
Question 1
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Question 2
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Question 3
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Question 4
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Question 5
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Question 6
You are monitoring an Azure App Service using Application Insights. You notice that the server response time is high for certain requests. You need to drill down to see which external dependencies (like databases or APIs) are causing the delay. Which Application Insights feature should you use?
FAQ
Questions learners often ask
What does this AZ-204 question test?
Read the scenario before looking for a memorised answer.
What is the correct answer to this question?
The correct answer is: HTTP action with 'Active Directory OAuth' authentication type, referencing the client ID and client secret — The 'HTTP' action with 'Active Directory OAuth' authentication type allows you to specify the tenant, client ID, and client secret (which can be dynamically retrieved from Key Vault). This implements the client credentials flow. Managed identity authentication is only for Microsoft Entra ID-protected Azure services, not for third-party APIs. Other options are not suitable for this OAuth flow.
What should I do if I get this AZ-204 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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