The answer is that access tokens expire after 2 hours. This is correct because the PowerShell script uses the `New-AzureADPolicy` cmdlet with a `TokenLifetimePolicy` type, setting the `AccessTokenLifetime` parameter to a TimeSpan of two hours, and then assigns that policy to the application’s service principal via `Add-AzureADServicePrincipalPolicy`. On the AZ-500 exam, this scenario tests your understanding of how token lifetime policies are configured and applied at the service principal level, not at the user or tenant level—a common trap is confusing this with a tenant-wide default or thinking the policy applies to refresh tokens. Remember that the `TokenLifetimePolicy` type specifically controls access token duration, and the assignment cmdlet targets the application object. A useful memory tip: “Two-hour token, service principal spoken”—the policy is always bound to the app’s service principal, not the user.
AZ-500 Secure identity and access Practice Question
This AZ-500 practice question tests your understanding of secure identity and access. 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.
Exhibit
Refer to the exhibit.
$policy = New-AzureADPolicy -Definition @('{"TokenLifetimePolicy":{"Version":1,"AccessTokenLifetime":"02:00:00","MaxAgeSessionSingleFactor":"01:00:00"}}') -DisplayName "TwoHourToken" -IsOrganizationDefault $false
Add-AzureADApplicationPolicy -Id $appId -RefObjectId $policy.Id
You executed the PowerShell script shown in the exhibit to set a token lifetime policy for an application. What is the effect on users accessing the application?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Access tokens expire after 2 hours
The PowerShell script sets an access token lifetime of 2 hours via the `New-AzureADPolicy` cmdlet with `TokenLifetimePolicy` type. This policy is then assigned to a specific service principal (application) using `Add-AzureADServicePrincipalPolicy`. Therefore, for users accessing that application, access tokens will expire after 2 hours, requiring a new token to be obtained once the lifetime is exceeded.
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.
✗
Session tokens expire after 1 hour
Why it's wrong here
MaxAgeSessionSingleFactor is 1 hour, but session tokens are not access tokens.
✗
The policy applies to all applications in the tenant
Why it's wrong here
IsOrganizationDefault is false, so it applies only to the specified application.
✓
Access tokens expire after 2 hours
Why this is correct
The policy sets AccessTokenLifetime to 2 hours.
Related concept
Read the scenario before looking for a memorised answer.
✗
Users are forced to reauthenticate every hour
Why it's wrong here
The access token lifetime is 2 hours, not 1.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse access token lifetime with session token lifetime or assume the policy applies tenant-wide, when in fact the `Add-AzureADServicePrincipalPolicy` cmdlet binds it to a specific application.
Detailed technical explanation
How to think about this question
Under the hood, Azure AD token lifetime policies are defined as JSON objects and can be applied at tenant, service principal, or resource level. The `TokenLifetimePolicy` type supports properties like `AccessTokenLifetime`, `MaxInactiveTime`, and `MaxAgeSessionSingleFactor`. In this case, the policy sets `AccessTokenLifetime` to `02:00:00`, meaning the access token is valid for 2 hours, but the session token (if configured separately) could have a different lifetime, allowing silent token renewal without user interaction.
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-500 question in full detail.
Secure identity and access — This question tests Secure identity and access — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Access tokens expire after 2 hours — The PowerShell script sets an access token lifetime of 2 hours via the `New-AzureADPolicy` cmdlet with `TokenLifetimePolicy` type. This policy is then assigned to a specific service principal (application) using `Add-AzureADServicePrincipalPolicy`. Therefore, for users accessing that application, access tokens will expire after 2 hours, requiring a new token to be obtained once the lifetime is exceeded.
What should I do if I get this AZ-500 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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