PL-300 Prepare the data Practice Question
You need to connect Power BI to an Excel file stored on a local network drive. The file is updated manually each morning. You want the Power BI report to always show the latest data when opened. Which data connectivity mode should you choose?
⚠ Common exam trap
Many candidates confuse DirectQuery with the ability to query any file-based source, but Microsoft explicitly restricts DirectQuery to SQL-based and OData sources, not Excel or CSV files.
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
✓
Import
(Import) is correct because Power BI must load the Excel data into its internal VertiPaq engine to support the full range of transformations and visualizations. Since the file is on a local network drive and updated manually, Import mode allows you to refresh the dataset on demand or via a scheduled refresh, ensuring the report always shows the latest data when opened. DirectQuery and Live Connection are not applicable because they require a live queryable data source (like SQL Server or Analysis Services), not a flat file.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Live Connection
Why it's wrong here
Live Connection is a storage mode that sends real-time queries to an external semantic model, such as an Analysis Services instance or an existing Power BI dataset, rather than pulling data from a file. Excel files are neither semantic models nor query endpoints, so Power BI Desktop cannot establish a live connection to an .xlsx file on a local drive. This mode also requires row-level security and other features to be defined in the source model, which is not applicable to Excel.
- ✗
Dual
Why it's wrong here
Dual storage mode combines Import and DirectQuery by retaining an in-memory cache while also allowing the table to query the underlying source for real-time data, but this only exists for tables in a DirectQuery-enabled model. Excel is not a supported DirectQuery source, so a Dual table cannot reference an Excel workbook from a local path. Additionally, when connecting to Excel, Power BI only offers an Import-based ingestion workflow in the Get Data experience, with no storage-mode toggle.
- ✓
Import
Why this is correct
Import mode loads the contents of the Excel file into the VertiPaq in-memory engine, where data is compressed and stored for fast interactive analysis. After the initial load, you can refresh the dataset on a schedule to pick up changes in the workbook, though for files on a local machine an on-premises data gateway is needed for automated refresh. Because the data is cached, all Power BI features—including calculated columns, measures, and RLS—are fully supported, and visuals do not hit the source file on every interaction.
- ✗
DirectQuery
Why it's wrong here
DirectQuery is a connectivity mode that sends queries directly to the underlying data source each time a visual is rendered, and it is only available for sources with a native connector that can handle those queries. Excel, being a file rather than a persistent database engine, does not support DirectQuery—Power BI Desktop will not present DirectQuery as an option when importing spreadsheets. Even if you convert the data range to an Excel Table, it still lacks the ability to process DAX-backed queries in real time, so Import remains the only viable method for Excel.
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Written by Johnson Ajibi, MSc IT Security
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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.