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MD-102 Practice Question: Has deployed Microsoft Entra Connect Sync to…
An organization has deployed Microsoft Entra Connect Sync to synchronize on-premises Active Directory to Microsoft Entra ID. Users report that some cloud-only user accounts cannot be assigned licenses. The admin checks the provisioning logs and finds that the cloud accounts have a source of authority of 'Microsoft Entra ID'. What is the most likely cause?
⚠ Common exam trap
It's easy for candidates to assume license assignment failures are due to synchronization issues or missing proxyAddresses, but the real requirement is the UsageLocation attribute, which is often overlooked in cloud-only user provisioning.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
The accounts are missing the 'UsageLocation' attribute, which is required for license assignment.
The most likely cause is that the cloud-only user accounts are missing the 'UsageLocation' attribute. In Microsoft Entra ID, a UsageLocation must be set before licenses can be assigned to any user, including cloud-only accounts. Without this attribute, license assignment fails regardless of the user's source of authority.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The accounts have the 'cloudOnly' attribute set to true, which blocks license assignment.
Why it's wrong here
There is no such attribute as 'cloudOnly'.
- ✗
The accounts have no proxyAddresses, so licensing fails.
Why it's wrong here
proxyAddresses are not required for licensing.
- ✓
The accounts are missing the 'UsageLocation' attribute, which is required for license assignment.
Why this is correct
UsageLocation must be set before assigning licenses.
- ✗
The users are not synchronized because the sync schedule is set to manual.
Why it's wrong here
Cloud-only accounts are not synced; they are created directly in Entra ID.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MD-102 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 MD-102 exam.