Quick Answer
The answer is Dynamic Data Masking and Always Encrypted, the two database-level security features available in Azure SQL Database to protect sensitive data. Always Encrypted encrypts data at the column level, ensuring that even database administrators cannot view the plaintext values, while Dynamic Data Masking obfuscates sensitive data in query results by applying masking rules to designated columns. On the Microsoft Azure Security Engineer Associate AZ-500 exam, this question tests your ability to distinguish between data protection mechanisms and access control or infrastructure-level security. A common trap is confusing Azure AD authentication, which controls who can log in, with data protection features, or mistaking Azure Disk Encryption, which secures VM disks, for a database-level control. Remember the mnemonic “ADM” for Always Encrypted, Dynamic Data Masking, and Masking—both operate directly on the data within the database, unlike authentication or disk encryption.
This AZ-500 practice question tests your understanding of secure compute, storage, and databases. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
Which TWO database-level security features are available in Azure SQL Database to protect sensitive data?
Azure Information Protection
Why wrong: AIP is for classification and labeling.
Always Encrypted
Column-level encryption.
Dynamic Data Masking
Masks sensitive data in query results.
Azure AD authentication
Why wrong: Authentication is about identity, not data protection.
Azure Disk Encryption
Why wrong: Not applicable to Azure SQL Database.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Always Encrypted
Option A and Option C are correct. Always Encrypted (A) encrypts data at the column level, and Dynamic Data Masking (C) obfuscates data in query results. Option B is wrong because Azure AD authentication is an access control feature, not data protection. Option D is wrong because Azure Information Protection is a classification service. Option E is wrong because Azure Disk Encryption is for VMs.
Key principle: Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Azure Information Protection
Why it's wrong here
AIP is for classification and labeling.
Always Encrypted
Why this is correct
Column-level encryption.
Related concept
CIDR notation defines the prefix length.
Dynamic Data Masking
Why this is correct
Masks sensitive data in query results.
Related concept
CIDR notation defines the prefix length.
Azure AD authentication
Why it's wrong here
Authentication is about identity, not data protection.
Azure Disk Encryption
Why it's wrong here
Not applicable to Azure SQL Database.
Common exam traps
Subnetting questions often tempt you into counting all addresses. In normal IPv4 subnets, the network and broadcast addresses are not usable host addresses.
Detailed technical explanation
Subnetting questions test whether you can identify the network, broadcast address, usable range, mask and correct subnet. Slow down enough to calculate the block size correctly.
Key takeaway
Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
Real-world example
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
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related AZ-500 subnetting questions on CIDR, address ranges, and subnet selection.
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FAQ
Secure compute, storage, and databases — This question tests Secure compute, storage, and databases — CIDR notation defines the prefix length..
The correct answer is: Always Encrypted — Option A and Option C are correct. Always Encrypted (A) encrypts data at the column level, and Dynamic Data Masking (C) obfuscates data in query results. Option B is wrong because Azure AD authentication is an access control feature, not data protection. Option D is wrong because Azure Information Protection is a classification service. Option E is wrong because Azure Disk Encryption is for VMs.
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related AZ-500 subnetting questions on CIDR, address ranges, and subnet selection.
CIDR notation defines the prefix length.
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Last reviewed: Jun 20, 2026
This AZ-500 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-500 exam.
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