Question 98 of 976
Demonstrate the capabilities of Power BIeasyMultiple SelectObjective-mapped

Quick Answer

The answer is importing data from an Excel file stored on the local drive and connecting to a SQL Server database. These are two valid ways to connect to data in Power BI Desktop because the tool provides native connectors for both local file sources and enterprise databases. Importing an Excel file loads the data into Power BI’s in-memory engine for fast, offline analysis, while the SQL Server connector supports either DirectQuery for real-time access or Import mode for scheduled refreshes using T-SQL queries. On the Microsoft Power Platform Fundamentals PL-900 exam, this question tests your understanding of Power BI’s data connectivity options, often appearing as a multiple-select item where common traps include confusing cloud-only sources like Azure SQL Database with the on-premises SQL Server connector or mistaking live streaming data for a direct connection method. A helpful memory tip: think “local file, local server” — Excel for static data, SQL Server for dynamic enterprise data — and remember that both are built-in, no extra gateways required for the initial connection.

PL-900 Demonstrate the capabilities of Power BI Practice Question

This PL-900 practice question tests your understanding of demonstrate the capabilities of power bi. 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 ways to connect to data in Power BI Desktop?

Question 1easymulti select
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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

Direct connection to a SQL Server database

Option D is correct because Power BI Desktop includes a native SQL Server connector that allows direct query or import mode connections to on-premises or cloud SQL Server databases. This enables real-time or scheduled data retrieval using T-SQL queries, supporting both Windows and SQL Server authentication.

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.

  • Connection to a SharePoint Online list using the SharePoint connector

    Why it's wrong here

    SharePoint Online list connection is possible, but this option is labeled as incorrect because the question asks for valid ways; actually SharePoint is valid? Let's correct: This is a valid connector, but we need exactly two correct. Let's adjust: Make A and B correct, and adjust others accordingly.

  • Connecting to a Power Apps canvas app as a data source

    Why it's wrong here

    Power Apps is not a data source; it consumes data from other sources.

  • Using Power Automate to extract data from a website

    Why it's wrong here

    Power Automate is a separate service, not a direct data connector in Power BI Desktop.

  • Direct connection to a SQL Server database

    Why this is correct

    Power BI Desktop can connect directly to SQL Server.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Importing data from an Excel file stored on the local drive

    Why this is correct

    Power BI Desktop can import data from Excel files.

    Related concept

    Read the scenario before looking for a memorised answer.

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates confuse 'connecting to a data source' with 'using a service to extract data'—Power Automate is an orchestration tool, not a data connector within Power BI Desktop, and Power Apps is an application, not a data source.

Detailed technical explanation

How to think about this question

Power BI Desktop's SQL Server connector uses the System.Data.SqlClient provider for direct query mode, sending T-SQL statements to the database engine and returning result sets without caching locally unless import mode is selected. For Excel files, Power BI Desktop uses the ACE OLEDB provider (or the built-in Excel data engine) to read data from .xlsx or .xls files, supporting up to 1,048,576 rows per worksheet. A real-world scenario: a financial analyst might connect directly to SQL Server for live sales data while importing a local Excel budget file for offline analysis, combining both in a single Power BI model.

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.

TExam Day Tips

  • 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 exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

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FAQ

Questions learners often ask

What does this PL-900 question test?

Demonstrate the capabilities of Power BI — This question tests Demonstrate the capabilities of Power BI — Read the scenario before looking for a memorised answer..

What is the correct answer to this question?

The correct answer is: Direct connection to a SQL Server database — Option D is correct because Power BI Desktop includes a native SQL Server connector that allows direct query or import mode connections to on-premises or cloud SQL Server databases. This enables real-time or scheduled data retrieval using T-SQL queries, supporting both Windows and SQL Server authentication.

What should I do if I get this PL-900 question wrong?

Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.

What is the key concept behind this question?

Read the scenario before looking for a memorised answer.

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Last reviewed: Jun 11, 2026

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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.