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.
Which TWO of the following are authentication methods supported by Microsoft Entra ID? (Select TWO.)
One-time password (OTP) tokens
Why wrong: Not natively supported; requires federation or third-party.
Password
Traditional password authentication.
Smart card with PIN
Why wrong: Not a native Microsoft Entra authentication method.
Biometric (fingerprint/face)
Why wrong: Device-level authentication, not a Microsoft Entra method.
FIDO2 security keys
Passwordless authentication method.
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
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.
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.
One-time password (OTP) tokens
Why it's wrong here
Not natively supported; requires federation or third-party.
Password
Why this is correct
Traditional password authentication.
Related concept
Read the scenario before looking for a memorised answer.
Smart card with PIN
Why it's wrong here
Not a native Microsoft Entra authentication method.
Biometric (fingerprint/face)
Why it's wrong here
Device-level authentication, not a Microsoft Entra method.
FIDO2 security keys
Why this is correct
Passwordless authentication method.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often confuse authentication methods supported by Microsoft Entra ID with those supported by on-premises Active Directory or device-level authentication, leading them to incorrectly select smart card with PIN or biometric as native Entra ID methods.
Detailed technical explanation
Microsoft Entra ID supports multiple authentication methods including password, FIDO2 security keys, Microsoft Authenticator app (push notifications and OTP), Windows Hello for Business (PIN/biometric), and certificate-based authentication. FIDO2 security keys use the WebAuthn standard for passwordless, phishing-resistant authentication, and are supported in Entra ID for both users and administrators. The password method relies on the authentication protocols such as OAuth 2.0 and OpenID Connect, with password validation occurring against the Entra ID directory or via federation with on-premises Active Directory.
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.
What to study next
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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 — 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.
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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