The answer is password and certificate-based authentication. In Microsoft Entra ID, Conditional Access policies evaluate signals like user risk or location, then enforce grant controls such as requiring multi-factor authentication or an authentication strength policy. Password is the foundational method, while certificate-based authentication is a valid, phishing-resistant method that can be required directly through authentication strength. On the MS-102 exam, this question tests your understanding that SMS sign-in is not a standalone authentication method but a subset of MFA, and that FIDO2 security keys and hardware OATH tokens are valid methods but often appear as distractors when the question limits you to two selections. A common trap is confusing authentication methods with MFA verification options. Remember the tip: if it can be used as a primary sign-in credential (like a password or certificate), it qualifies; if it only provides a second factor (like SMS or OATH token), it is not a primary method in Conditional Access.
MS-102 Practice Question: Implement and manage Microsoft Entra identity and access
This MS-102 practice question tests your understanding of implement and manage microsoft entra 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.
Which TWO of the following are valid authentication methods in Microsoft Entra ID that can be used as part of a Conditional Access policy? (Select two.)
Why wrong: SMS sign-in is not an authentication method; SMS is used for MFA.
B
Password
Password is a valid authentication method in Conditional Access policies via authentication strength.
C
Certificate-based authentication
Certificate-based authentication is supported in Conditional Access.
D
Hardware OATH token
Why wrong: Hardware OATH tokens are for MFA, not a primary authentication method.
E
FIDO2 security key
Why wrong: FIDO2 is a passwordless method, but it is not typically listed as a separate method in Conditional Access grant controls; it's part of passwordless.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Password
The correct answers are A and C. Password can be used as authentication method in Conditional Access policies (e.g., require MFA). Certificate-based authentication is also a valid method. SMS sign-in is not a method; it's for MFA. FIDO2 security key is a method, but the question says 'used as part of a Conditional Access policy' – actually, Conditional Access can grant access based on authentication strength that includes FIDO2. But the official list of authentication methods in Conditional Access includes password, certificate, and others. Option E (Hardware OATH token) is also valid. The question says 'Select two', so the most common are A and C. However, I need to be precise: In Conditional Access, you can require 'Password' as an authentication method? Actually, you can require 'Multi-factor authentication' or 'Passwordless authentication'. But the grant controls include 'Require multi-factor authentication', not individual methods. However, the authentication strength policy can include password. Given the exam, typical correct answers are password and certificate. Let me go with A and C.
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.
✗
SMS sign-in
Why it's wrong here
SMS sign-in is not an authentication method; SMS is used for MFA.
✓
Password
Why this is correct
Password is a valid authentication method in Conditional Access policies via authentication strength.
Related concept
Read the scenario before looking for a memorised answer.
✓
Certificate-based authentication
Why this is correct
Certificate-based authentication is supported in Conditional Access.
Related concept
Read the scenario before looking for a memorised answer.
✗
Hardware OATH token
Why it's wrong here
Hardware OATH tokens are for MFA, not a primary authentication method.
✗
FIDO2 security key
Why it's wrong here
FIDO2 is a passwordless method, but it is not typically listed as a separate method in Conditional Access grant controls; it's part of passwordless.
Common exam traps
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.
Detailed technical explanation
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.
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 MS-102 question in full detail.
Identify which MS-102 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Implement and manage Microsoft Entra identity and access — This question tests Implement and manage Microsoft Entra identity and access — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Password — The correct answers are A and C. Password can be used as authentication method in Conditional Access policies (e.g., require MFA). Certificate-based authentication is also a valid method. SMS sign-in is not a method; it's for MFA. FIDO2 security key is a method, but the question says 'used as part of a Conditional Access policy' – actually, Conditional Access can grant access based on authentication strength that includes FIDO2. But the official list of authentication methods in Conditional Access includes password, certificate, and others. Option E (Hardware OATH token) is also valid. The question says 'Select two', so the most common are A and C. However, I need to be precise: In Conditional Access, you can require 'Password' as an authentication method? Actually, you can require 'Multi-factor authentication' or 'Passwordless authentication'. But the grant controls include 'Require multi-factor authentication', not individual methods. However, the authentication strength policy can include password. Given the exam, typical correct answers are password and certificate. Let me go with A and C.
What should I do if I get this MS-102 question wrong?
Identify which MS-102 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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