SC-900 Describe the capabilities of Microsoft Entra Practice Question
This SC-900 practice question tests your understanding of describe the capabilities of microsoft entra. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
Your organization uses Microsoft Entra ID free tier. You need to synchronize user accounts from your on-premises Active Directory to the cloud. You also need to synchronize password hashes so that users can use the same password for cloud and on-premises resources. Which tool should you use?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Install Microsoft Entra Connect and enable password hash synchronization.
Microsoft Entra Connect is the correct tool for synchronizing on-premises Active Directory user accounts to Microsoft Entra ID (formerly Azure AD) and enabling password hash synchronization. Password hash synchronization allows users to use the same password for both on-premises and cloud resources by syncing a hash of the on-premises password to Entra ID, which is supported in the free tier of Entra ID.
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.
✗
Configure Microsoft Entra Domain Services to sync from on-premises.
Why it's wrong here
Domain Services is a managed domain, not a sync tool.
✗
Use Microsoft Graph API to create users and set passwords.
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Microsoft Entra Domain Services with Microsoft Entra Connect, thinking that Domain Services can sync from on-premises AD, when in fact it only syncs from Entra ID to the managed domain, not the other way around.
Detailed technical explanation
How to think about this question
Password hash synchronization works by hashing the on-premises password using a one-way hash (MD4) and then syncing that hash to Entra ID via Microsoft Entra Connect. The sync process runs every 2 minutes for password changes, and the hash is salted and hashed again before storage in the cloud, ensuring no plaintext passwords are transmitted. In a real-world scenario, this allows users to access cloud apps like Microsoft 365 without needing to remember a separate password, while still supporting on-premises authentication.
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 media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
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: Install Microsoft Entra Connect and enable password hash synchronization. — Microsoft Entra Connect is the correct tool for synchronizing on-premises Active Directory user accounts to Microsoft Entra ID (formerly Azure AD) and enabling password hash synchronization. Password hash synchronization allows users to use the same password for both on-premises and cloud resources by syncing a hash of the on-premises password to Entra ID, which is supported in the free tier of Entra ID.
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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Question Discussion
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