- A
Location
Location condition allows you to include or exclude access attempts based on IP address ranges (e.g., trusted vs untrusted).
- B
Device state
Device state condition can require the device to be marked as compliant or domain-joined.
- C
Sign-in risk
Why wrong: Sign-in risk is a condition based on real-time risk detection, which is not mentioned in the requirements.
- D
Application
Why wrong: Application is part of the assignments (Cloud apps) where you select which app the policy applies to, not a condition.
Question 1,082 of 1,411
Configuring Location and Device State Conditions in Conditional Access Policies
This SC-900 practice question tests your understanding of describe the capabilities of microsoft entra. 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.
A company uses Microsoft Entra ID (Azure AD). The security team wants to create a Conditional Access policy that meets the following requirements: - Require multi-factor authentication (MFA) when users access a sensitive financial application from an untrusted network. - Additionally, require that the device accessing the app is compliant with company policies (e.g., encryption enabled). Which two conditions should the team configure in the Conditional Access policy? (Choose two.)
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
✓
Location
Option A (Location) is correct because the policy requires MFA when users access the sensitive financial application from an untrusted network. In Microsoft Entra ID Conditional Access, the Location condition uses named locations (such as trusted IP ranges or countries) to determine whether a network is trusted or untrusted, enabling the policy to trigger MFA only when access originates from an untrusted location.
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.
- ✓
Location
Why this is correct
Location condition allows you to include or exclude access attempts based on IP address ranges (e.g., trusted vs untrusted).
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Device state
Why this is correct
Device state condition can require the device to be marked as compliant or domain-joined.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Sign-in risk
Why it's wrong here
Sign-in risk is a condition based on real-time risk detection, which is not mentioned in the requirements.
When this WOULD be correct
A question that asks: 'You need to block sign-ins when there is a high probability that the sign-in is not from the user's identity. Which condition should you configure?' In that case, Sign-in risk would be correct.
- ✗
Application
Why it's wrong here
Application is part of the assignments (Cloud apps) where you select which app the policy applies to, not a condition.
When this WOULD be correct
In a scenario where the policy must apply only to specific applications (e.g., block access to a legacy app unless MFA is performed), 'Application' would be a condition to scope the policy to that app.
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The SC-900 exam frequently reuses these exact scenarios with slightly different constraints.
✓LocationCorrect answer▾
Why this is correct
Location condition allows you to include or exclude access attempts based on IP address ranges (e.g., trusted vs untrusted).
✗Sign-in riskWrong answer — click to see why▾
Why this is wrong here
The question requires MFA based on network location (untrusted network) and device compliance (device state), not sign-in risk. Sign-in risk is used for policies that respond to suspicious sign-in behavior, not network trust or device compliance.
★ When this WOULD be the correct answer
A question that asks: 'You need to block sign-ins when there is a high probability that the sign-in is not from the user's identity. Which condition should you configure?' In that case, Sign-in risk would be correct.
Why candidates choose this
Candidates may confuse sign-in risk with network location because both involve 'risk' or 'trust', but sign-in risk is based on real-time threat detection (e.g., leaked credentials) rather than network location.
✗ApplicationWrong answer — click to see why▾
Why this is wrong here
The question requires conditions for network trust (location) and device compliance (device state), not application selection. The application is already specified as the target of the policy, not a condition.
★ When this WOULD be the correct answer
In a scenario where the policy must apply only to specific applications (e.g., block access to a legacy app unless MFA is performed), 'Application' would be a condition to scope the policy to that app.
Why candidates choose this
Candidates may think 'Application' is needed to specify which app the policy applies to, but in this question the app is already the target; conditions are about when to enforce the policy, not which app.
Analysis generated from the official SC-900blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse the Application assignment (which defines the target app) with a condition, leading them to select Application as a condition instead of recognizing that Location and Device state are the two conditions that enforce the specific requirements.
Detailed technical explanation
How to think about this question
The Location condition in Conditional Access relies on named locations defined via IPv4/IPv6 CIDR ranges or country/region selection, and can mark locations as trusted or untrusted. The Device state condition checks whether the device is marked as compliant or hybrid Azure AD joined, which requires the device to be enrolled in Microsoft Intune or another MDM and meet compliance policies (e.g., BitLocker encryption enabled). Under the hood, Conditional Access evaluates these conditions at authentication time, combining them with the application assignment to enforce MFA and device compliance requirements.
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.
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Describe the capabilities of Microsoft Entra — study guide chapter
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FAQ
Questions learners often ask
What does this SC-900 question test?
Describe the capabilities of Microsoft Entra — This question tests Describe the capabilities of Microsoft Entra — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Location — Option A (Location) is correct because the policy requires MFA when users access the sensitive financial application from an untrusted network. In Microsoft Entra ID Conditional Access, the Location condition uses named locations (such as trusted IP ranges or countries) to determine whether a network is trusted or untrusted, enabling the policy to trigger MFA only when access originates from an untrusted location.
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.
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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