This AZ-500 practice question tests your understanding of secure identity and access. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
You are configuring a conditional access policy to block access from untrusted locations. The policy should apply to all cloud apps except Microsoft Entra ID Administration. How should you configure the policy?
Include 'All cloud apps' and set 'Block access'
Why wrong: Would block admin too.
Include 'Select apps' and choose all apps except admin
Why wrong: Not possible to select all individually.
Include 'All cloud apps' and exclude 'Microsoft Entra ID Administration'
Excludes the admin portal from blocking.
Include 'All cloud apps' and exclude 'Office 365'
Why wrong: Incorrect exclusion.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Include 'All cloud apps' and exclude 'Microsoft Entra ID Administration'
Option C is correct because the requirement is to block access from untrusted locations for all cloud apps except Microsoft Entra ID Administration. In Conditional Access, you include 'All cloud apps' to cover every app, then explicitly exclude 'Microsoft Entra ID Administration' to exempt it from the block. This ensures the policy applies broadly while honoring the exclusion.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Include 'All cloud apps' and set 'Block access'
Why it's wrong here
Would block admin too.
Include 'Select apps' and choose all apps except admin
Why it's wrong here
Not possible to select all individually.
Include 'All cloud apps' and exclude 'Microsoft Entra ID Administration'
Why this is correct
Excludes the admin portal from blocking.
Related concept
Read the scenario before looking for a memorised answer.
Include 'All cloud apps' and exclude 'Office 365'
Why it's wrong here
Incorrect exclusion.
Common exam traps
The trap here is that candidates often confuse 'Microsoft Entra ID Administration' with 'Office 365' or think they must manually select all apps, missing the efficient 'All cloud apps' plus exclusion pattern.
Detailed technical explanation
Conditional Access policies evaluate at runtime using the Azure AD authentication pipeline. The 'All cloud apps' option includes every app registered in the tenant, including Microsoft Graph and Azure Resource Manager. Excluding 'Microsoft Entra ID Administration' ensures that administrative access (e.g., to the Entra admin center) remains available even from untrusted locations, which is critical for break-glass scenarios. Under the hood, the policy applies to the 'MicrosoftAdminPortals' resource ID, which is distinct from other Office 365 services.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
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
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FAQ
Secure identity and access — This question tests Secure identity and access — Read the scenario before looking for a memorised answer..
The correct answer is: Include 'All cloud apps' and exclude 'Microsoft Entra ID Administration' — Option C is correct because the requirement is to block access from untrusted locations for all cloud apps except Microsoft Entra ID Administration. In Conditional Access, you include 'All cloud apps' to cover every app, then explicitly exclude 'Microsoft Entra ID Administration' to exempt it from the block. This ensures the policy applies broadly while honoring the exclusion.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 25, 2026
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