- A
FIDO2 security keys
Passwordless authentication method.
- B
Password
Standard password authentication.
- C
Smart card (physical)
Why wrong: Not directly supported; requires federation or certificate-based authentication.
- D
SMS-based verification
Why wrong: SMS is being deprecated as an authentication method.
- E
Microsoft Authenticator app
Supports push notifications and OTP.
Question 1,120 of 1,411
Supported Authentication Methods in Microsoft Entra ID — Password, FIDO2, Authenticator | Microsoft Security, Compliance, and Identity Fundamentals Explained
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.
Which THREE are valid authentication methods in Microsoft Entra ID?
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
✓
FIDO2 security keys
FIDO2 security keys are a valid authentication method in Microsoft Entra ID because they provide passwordless, phishing-resistant authentication using public-key cryptography. Users register a hardware key that generates a key pair, and the private key never leaves the device, meeting strong authentication requirements for modern security.
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.
- ✓
FIDO2 security keys
Why this is correct
Passwordless authentication method.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Password
Why this is correct
Standard password authentication.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Smart card (physical)
Why it's wrong here
Not directly supported; requires federation or certificate-based authentication.
- ✗
SMS-based verification
Why it's wrong here
SMS is being deprecated as an authentication method.
- ✓
Microsoft Authenticator app
Why this is correct
Supports push notifications and OTP.
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 often confuse 'supported authentication methods' with 'secondary verification methods'—SMS is only a secondary factor, not a primary sign-in method, and smart cards require external federation, making them invalid as native Entra ID methods.
Detailed technical explanation
How to think about this question
Under the hood, FIDO2 uses the WebAuthn standard (W3C) and CTAP (Client-to-Authenticator Protocol) to bind the key to a specific user and device, ensuring the private key is never exposed to the server. In real-world scenarios, organizations deploy FIDO2 keys to eliminate password-related risks like phishing, as the authentication flow requires user presence and a hardware-backed cryptographic challenge. This method is supported in Microsoft Entra ID for both cloud-only and hybrid environments, but requires Windows 10/11 with the latest updates or supported browsers.
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.
Quick reference
Asymmetric Encryption Algorithm Comparison
| Algorithm | Key Exchange | Signatures | Equivalent Security Key | Notes |
|---|---|---|---|---|
| RSA-3072 | Yes | Yes | 128-bit | Widely deployed; slow for bulk data |
| ECDSA P-256 | No | Yes | 128-bit | Fast signatures; standard TLS certs |
| ECDH / ECDHE | Yes | No | 128-bit | Perfect forward secrecy in TLS 1.3 |
| DH / DHE | Yes | No | 128-bit (3072-bit key) | Replaced by ECDHE in modern TLS |
| Ed25519 | No | Yes | ~128-bit | SSH keys, modern PKI |
What to study next
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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: FIDO2 security keys — FIDO2 security keys are a valid authentication method in Microsoft Entra ID because they provide passwordless, phishing-resistant authentication using public-key cryptography. Users register a hardware key that generates a key pair, and the private key never leaves the device, meeting strong authentication requirements for modern security.
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.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
2 more ways this is tested on SC-900
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. Which TWO of the following are authentication methods supported by Microsoft Entra ID? (Select TWO.)
easy- A.One-time password (OTP) tokens
- ✓ B.Password
- C.Smart card with PIN
- D.Biometric (fingerprint/face)
- ✓ E.FIDO2 security keys
Why B: Password is a fundamental authentication method supported by Microsoft Entra ID. It is the most common primary authentication factor used for user sign-in, where the user provides a username and password that is verified against the directory. Entra ID supports password-based authentication for cloud-only accounts, synchronized on-premises passwords via Password Hash Sync, and pass-through authentication.
Variation 2. Which TWO of the following are authentication methods supported by Microsoft Entra ID?
easy- ✓ A.Passwordless phone sign-in with Microsoft Authenticator
- B.Biometric only (fingerprint/face) without device
- C.SMS sign-in
- ✓ D.FIDO2 security keys
- E.Certificate-based authentication
Why A: Passwordless phone sign-in with Microsoft Authenticator is a supported authentication method in Microsoft Entra ID. It allows users to sign in without a password by using a biometric or PIN gesture on their mobile device, leveraging the Microsoft Authenticator app to verify identity via a push notification or a time-based one-time passcode (TOTP). This method enhances security by reducing reliance on passwords and is part of Microsoft's passwordless authentication strategy.
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Last reviewed: Jun 24, 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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