Quick Answer
The answer is Excel workbook and SQL Server Analysis Services database. Excel workbook is a valid Power Query data source because Power BI Desktop natively supports importing data from .xlsx and .xlsm files through its Excel connector, which is one of the most common entry points for business analysts preparing data. SQL Server Analysis Services is also valid because Power Query can connect directly to both multidimensional and tabular models using the Analysis Services connector, enabling import or DirectQuery modes with MDX or DAX queries. On the Microsoft Power BI Data Analyst PL-300 exam, this question tests your ability to distinguish between file-based and enterprise database sources that Power Query supports natively, versus sources like PDF or SharePoint lists that require additional connectors or transformations. A common trap is assuming that any file type works, but Power Query specifically validates structured sources like Excel workbooks and SSAS databases. Memory tip: think “Excel for files, SSAS for cubes” — both are first-class connectors in Power Query’s native source list.
This PL-300 practice question tests your understanding of prepare the data. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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 data sources for Power Query in Power BI Desktop? (Select exactly two.)
SharePoint list
Why wrong: This is a valid source, but the question asks for exactly two; B and C are also valid.
SQL Server Analysis Services database
Valid source for multidimensional or tabular models.
Power BI dataset
Why wrong: Power BI dataset is a valid source via live connection, but not typically for Power Query import.
Microsoft Entra ID
Why wrong: This is an identity service, not a data source.
Excel workbook
Commonly used source.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
SQL Server Analysis Services database
Option B is correct because Power Query in Power BI Desktop can connect directly to SQL Server Analysis Services (SSAS) databases using the Analysis Services connector, which supports both multidimensional and tabular models. This allows you to import or DirectQuery data from SSAS cubes or tabular models, leveraging MDX or DAX queries respectively.
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.
SharePoint list
Why it's wrong here
This is a valid source, but the question asks for exactly two; B and C are also valid.
SQL Server Analysis Services database
Why this is correct
Valid source for multidimensional or tabular models.
Related concept
Read the scenario before looking for a memorised answer.
Power BI dataset
Why it's wrong here
Power BI dataset is a valid source via live connection, but not typically for Power Query import.
Microsoft Entra ID
Why it's wrong here
This is an identity service, not a data source.
Excel workbook
Why this is correct
Commonly used source.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often confuse 'Power BI dataset' as a valid Power Query source because it appears in the 'Get Data' list, but it is a live connection that does not use Power Query for transformation, making it invalid for this question's context.
Detailed technical explanation
Power Query uses the Analysis Services connector to communicate with SSAS via the XMLA protocol (for tabular) or OLE DB for OLAP (for multidimensional). When connecting to a Power BI dataset, Power Query actually uses the same XMLA endpoint but the connection is read-only and does not allow data transformation in the traditional Power Query sense—it is a live connection that bypasses the Power Query engine. The Excel workbook connector (Option E) is one of the most common data sources, using the ACE OLEDB provider or the Open XML SDK to read data from .xlsx, .xls, or .xlsm files.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
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Prepare the data — study guide chapter
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FAQ
Prepare the data — This question tests Prepare the data — Read the scenario before looking for a memorised answer..
The correct answer is: SQL Server Analysis Services database — Option B is correct because Power Query in Power BI Desktop can connect directly to SQL Server Analysis Services (SSAS) databases using the Analysis Services connector, which supports both multidimensional and tabular models. This allows you to import or DirectQuery data from SSAS cubes or tabular models, leveraging MDX or DAX queries respectively.
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 24, 2026
This PL-300 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 PL-300 exam.
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