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Your company stores customer payment data in an Azure SQL Database. You need to ensure that only the application's managed identity can access the database, and no SQL logins or passwords are used. Which authentication method should you configure?

Question 1easymultiple choice
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Your company stores customer payment data in an Azure SQL Database. You need to ensure that only the application's managed identity can access the database, and no SQL logins or passwords are used. Which authentication method should you configure?

Full question →

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

Distractor review

SQL Server authentication with a strong password stored in Key Vault

This still uses SQL authentication, which requires a password and is not managed identity based.

B

Best answer

Use Microsoft Entra ID authentication with the managed identity configured as a contained database user

Managed identity can be granted access to Azure SQL via Microsoft Entra ID authentication without credentials.

C

Distractor review

Enable Transparent Data Encryption (TDE) and use the database's certificate

TDE encrypts data at rest but does not handle authentication.

D

Distractor review

Configure the Azure SQL firewall to allow only the application's outbound IP

Firewall rules restrict network access but do not authenticate the application's identity.

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.

AZ-204 fundamentals practice questions

Practise AZ-204 questions linked to AZ-204 fundamentals.

AZ-204 scenario practice questions

Practise AZ-204 questions linked to AZ-204 scenario.

AZ-204 troubleshooting practice questions

Practise AZ-204 questions linked to AZ-204 troubleshooting.

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

An application stores customer invoices in Azure Blob Storage. Deleted blobs must be recoverable for 14 days. What should be enabled?

Question 2

You are deploying a containerized application to Azure Container Instances. The application requires a custom domain name and SSL/TLS termination. You need to configure these features. Which resource should you create alongside the container group?

Question 3

A developer needs to run a Kusto query against application request data to identify 95th percentile latency by operation. Where should the query be run? The architecture review board prefers a managed AWS-native control.

Question 4

You are developing a web app that authenticates users via Microsoft Entra ID. The app needs to read the user's profile and send emails on their behalf. You want to minimize user consent prompts. Which OAuth 2.0 grant type should you use?

Question 5

You are developing an Azure Function that processes messages from an Azure Service Bus queue. The function uses a Service Bus queue trigger and runs on a Consumption Plan. The queue receives a high volume of messages in bursts. You need to ensure that the function scales out to handle the load but does not exceed 10 concurrent instances. Which configuration should you apply?

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: Use Microsoft Entra ID authentication with the managed identity configured as a contained database user — Microsoft Entra ID authentication allows you to use managed identities to authenticate to Azure SQL Database. By configuring an Microsoft Entra ID user (or the managed identity) as a contained database user, you can grant specific permissions without using SQL logins or passwords. SQL Server authentication uses usernames and passwords. Transparent Data Encryption (TDE) is for encryption at rest, not authentication. Firewall rules control network IP access but do not provide authentication.

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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