- A
Authentication
Step 1 verifies the user's identity via credentials, which is authentication.
- B
Authorization
Step 2 checks if the authenticated user is allowed to access the folder, which is authorization.
- C
Accounting
Why wrong: Accounting refers to logging and auditing user actions, which is not described in the scenario.
- D
Encryption
Why wrong: Encryption protects data by making it unreadable without a key, but the scenario does not involve data scrambling.
Quick Answer
The correct answers are authentication and authorization. Step 1, where the user provides a username and password, is authentication because it verifies the user’s identity by checking credentials against an identity provider like Azure AD. Step 2, where the system checks if the user can view a specific folder, is authorization because it determines what resources that verified identity is allowed to access. On the SC-900 exam, this distinction is frequently tested in scenario-based questions, often with a trap where candidates confuse the two steps or assume both are the same concept. A common memory tip is to think of authentication as proving who you are (like showing your ID at the door) and authorization as what you are allowed to do once inside (like which rooms you can enter). Remember: AuthN comes first, then AuthZ.
SC-900 Practice Question: Describe the concepts of security, compliance, and identity
This SC-900 practice question tests your understanding of describe the concepts of security, compliance, and identity. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 uses a system where users first provide a username and password (Step 1) and then the system checks whether the user has permission to view a specific folder (Step 2). Which two security concepts are demonstrated in this process? (Choose two.)
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"first"Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
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
Authentication
Step 1 (username and password) is authentication, which verifies the identity of the user by validating credentials against an identity provider such as Azure AD or on-premises Active Directory. This confirms who the user is before any access decisions are made.
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.
- ✓
Authentication
Why this is correct
Step 1 verifies the user's identity via credentials, which is authentication.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Authorization
Why this is correct
Step 2 checks if the authenticated user is allowed to access the folder, which is authorization.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Accounting
Why it's wrong here
Accounting refers to logging and auditing user actions, which is not described in the scenario.
- ✗
Encryption
Why it's wrong here
Encryption protects data by making it unreadable without a key, but the scenario does not involve data scrambling.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse authentication (identity verification) with authorization (permission enforcement), especially when both steps involve checking user identity or rights, but the question clearly separates the two distinct actions.
Trap categories for this question
Scenario analysis trap
Accounting refers to logging and auditing user actions, which is not described in the scenario.
Detailed technical explanation
How to think about this question
Authentication typically relies on protocols such as Kerberos (RFC 4120) or SAML for federated identity, where a ticket or token is issued after credential validation. Authorization then uses access control lists (ACLs) or role-based access control (RBAC) to determine if the authenticated user has the necessary permissions, such as NTFS permissions on a folder or Azure RBAC role assignments.
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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Describe the concepts of security, compliance, and identity — study guide chapter
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FAQ
Questions learners often ask
What does this SC-900 question test?
Describe the concepts of security, compliance, and identity — This question tests Describe the concepts of security, compliance, and identity — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Authentication — Step 1 (username and password) is authentication, which verifies the identity of the user by validating credentials against an identity provider such as Azure AD or on-premises Active Directory. This confirms who the user is before any access decisions are made.
What should I do if I get this SC-900 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
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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Last reviewed: Jun 11, 2026
This SC-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 SC-900 exam.
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