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 features are included in Microsoft Entra ID Free? (Choose three.)
Security reports and alerts
Free includes basic security reports.
Self-service password reset with on-premises writeback
Why wrong: Requires P1.
Conditional Access
Why wrong: Requires P1.
Single sign-on for up to 10 apps per user
Free includes SSO for 10 apps.
User provisioning from cloud HR apps
Free includes provisioning.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Security reports and alerts
Option A is correct because Microsoft Entra ID Free includes basic security reports and alerts that provide insights into sign-in activities and potential risks, such as sign-ins from unfamiliar locations or devices. These reports are part of the built-in Identity Security Reports, which are available at no additional cost in the Free tier.
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.
Security reports and alerts
Why this is correct
Free includes basic security reports.
Related concept
Read the scenario before looking for a memorised answer.
Self-service password reset with on-premises writeback
Why it's wrong here
Requires P1.
Conditional Access
Why it's wrong here
Requires P1.
Single sign-on for up to 10 apps per user
Why this is correct
Free includes SSO for 10 apps.
Related concept
Read the scenario before looking for a memorised answer.
User provisioning from cloud HR apps
Why this is correct
Free includes provisioning.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often confuse the Free tier's capabilities with premium features, mistakenly assuming that SSPR writeback or Conditional Access are included, when in fact they require P1 or P2 licensing.
Detailed technical explanation
Under the hood, Microsoft Entra ID Free provides a limited set of identity management features, including user and group management, basic security reports (e.g., anomalous sign-in activity), and single sign-on (SSO) for up to 10 SaaS applications per user using SAML 2.0 or OpenID Connect protocols. User provisioning from cloud HR apps (Option E) is also included in Free, enabling automatic user creation and synchronization from sources like Workday via SCIM (System for Cross-domain Identity Management) without requiring premium licenses.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
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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: Security reports and alerts — Option A is correct because Microsoft Entra ID Free includes basic security reports and alerts that provide insights into sign-in activities and potential risks, such as sign-ins from unfamiliar locations or devices. These reports are part of the built-in Identity Security Reports, which are available at no additional cost in the Free tier.
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
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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