The correct answer is to register an application in Microsoft Entra ID and configure the custom connector with the client ID and secret. This is required because OAuth 2.0 authentication relies on a trusted identity provider to issue access tokens; Microsoft Entra ID serves as that provider for custom connectors in Power Apps, and the client ID and secret act as the credentials that identify and authorize the connector to request tokens on behalf of the user. On the PL-900 exam, this concept tests your understanding of how custom connectors bridge external APIs with Power Platform, often appearing in scenario-based questions where you must distinguish authentication methods—a common trap is confusing OAuth 2.0 with API key authentication, which uses a simple key rather than token exchange. To remember this, think of Entra ID as the “bouncer” that issues the pass (token), and the client ID and secret as your “ID card” to get that pass.
PL-900 Demonstrate the capabilities of Power Apps Practice Question
This PL-900 practice question tests your understanding of demonstrate the capabilities of power apps. 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.
A developer is building a Canvas app that uses a custom connector to an external API. The API requires OAuth 2.0 authentication. What must the developer do to set up the connector?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Register an application in Microsoft Entra ID and configure the custom connector with the client ID and secret
Option D is correct because custom connectors with OAuth 2.0 require registering the app in Microsoft Entra ID. Option A is not possible. Option B is for custom API, not authentication. Option C is for API key authentication, not OAuth.
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.
✗
Select 'OAuth 2.0' as the authentication type and enter the API key
Why it's wrong here
OAuth 2.0 does not use API keys; it uses tokens.
✗
Create the connector with a Swagger file and set authentication to 'Anonymous'
Why it's wrong here
Anonymous is not secure for external APIs.
✗
Use the built-in HTTP connector with Basic authentication
Why it's wrong here
Basic authentication is not OAuth 2.0.
✓
Register an application in Microsoft Entra ID and configure the custom connector with the client ID and secret
Why this is correct
OAuth 2.0 requires app registration and credentials.
Related concept
Read the scenario before looking for a memorised answer.
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.
What to study next
Got this wrong? Here's your next step.
Identify which PL-900 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.
Demonstrate the capabilities of Power Apps — This question tests Demonstrate the capabilities of Power Apps — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Register an application in Microsoft Entra ID and configure the custom connector with the client ID and secret — Option D is correct because custom connectors with OAuth 2.0 require registering the app in Microsoft Entra ID. Option A is not possible. Option B is for custom API, not authentication. Option C is for API key authentication, not OAuth.
What should I do if I get this PL-900 question wrong?
Identify which PL-900 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.
About these practice questions
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These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A developer builds a canvas app that uses a custom connector to call an external API. The API requires an OAuth 2.0 client credentials flow. Which authentication type should the developer configure in the custom connector?
hard
✓ A.OAuth 2.0
B.Windows Authentication
C.API Key
D.Basic Authentication
Why A: Option D is correct because OAuth 2.0 client credentials is a standard OAuth flow. Option A is wrong because API Key is a different mechanism. Option B is wrong because Basic authentication is not OAuth. Option C is wrong because Windows Authentication is not OAuth.
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This PL-900 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-900 exam.
Question Discussion
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