This SC-900 practice question tests your understanding of describe the capabilities of microsoft entra. 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.
An organization is migrating from on-premises Active Directory to Microsoft Entra ID. They need to synchronize user passwords so that users can use the same password for both on-premises and cloud resources. Which authentication method should they choose?
Password Hash Synchronization
Synchronizes password hashes for same password use.
Seamless Single Sign-On
Why wrong: A feature that works with PHS or PTA, not an authentication method.
Pass-through Authentication
Why wrong: Validates on-premises but does not synchronize passwords.
Federation with AD FS
Why wrong: Requires a federation server, not synchronization.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Password Hash Synchronization
Password Hash Synchronization (PHS) is the correct choice because it synchronizes a hash of the user's on-premises Active Directory password to Microsoft Entra ID, allowing users to authenticate with the same password for both on-premises and cloud resources. This method is specifically designed for password synchronization without requiring any additional infrastructure or real-time validation against on-premises systems.
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.
Password Hash Synchronization
Why this is correct
Synchronizes password hashes for same password use.
Related concept
Read the scenario before looking for a memorised answer.
Seamless Single Sign-On
Why it's wrong here
A feature that works with PHS or PTA, not an authentication method.
Pass-through Authentication
Why it's wrong here
Validates on-premises but does not synchronize passwords.
Federation with AD FS
Why it's wrong here
Requires a federation server, not synchronization.
Common exam traps
The trap here is that candidates confuse 'synchronization' with 'single sign-on' or 'pass-through validation,' assuming that Seamless SSO or Pass-through Authentication also synchronize passwords, when in fact they do not transfer password hashes to the cloud.
Detailed technical explanation
Password Hash Synchronization uses the Microsoft Entra Connect Sync engine to compute a SHA-256 hash of the on-premises password hash, which is then salted and stored in Microsoft Entra ID. This allows users to authenticate even if the on-premises domain controller is unreachable, and it also enables features like Identity Protection and leaked credential detection. In a real-world scenario, PHS is often combined with Seamless SSO to provide both password synchronization and automatic sign-in for domain-joined devices.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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.
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FAQ
Describe the capabilities of Microsoft Entra — This question tests Describe the capabilities of Microsoft Entra — Read the scenario before looking for a memorised answer..
The correct answer is: Password Hash Synchronization — Password Hash Synchronization (PHS) is the correct choice because it synchronizes a hash of the user's on-premises Active Directory password to Microsoft Entra ID, allowing users to authenticate with the same password for both on-premises and cloud resources. This method is specifically designed for password synchronization without requiring any additional infrastructure or real-time validation against on-premises systems.
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
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