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. 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.
Your organization uses Microsoft Entra ID. Which THREE authentication methods can be used for passwordless sign-in?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Microsoft Authenticator (phone sign-in)
Microsoft Authenticator (phone sign-in) enables passwordless authentication by using a cryptographic key pair tied to the user's device. When signing in, the user approves a notification on their phone, and the Authenticator app signs the challenge with the private key, eliminating the need for a password.
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.
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Microsoft Authenticator (phone sign-in)
Why this is correct
Microsoft Authenticator can enable passwordless phone sign-in.
Related concept
Read the scenario before looking for a memorised answer.
✗
SMS-based verification
Why it's wrong here
SMS is not passwordless; it requires a phone number and text message.
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FIDO2 security keys
Why this is correct
FIDO2 keys provide passwordless authentication.
Related concept
Read the scenario before looking for a memorised answer.
✓
Windows Hello for Business
Why this is correct
Windows Hello for Business uses biometrics or PIN for passwordless sign-in.
Related concept
Read the scenario before looking for a memorised answer.
✗
Time-based one-time password (TOTP)
Why it's wrong here
TOTP is a software token, not passwordless.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse second-factor methods like TOTP or SMS codes with passwordless authentication, but passwordless requires the primary authentication factor to be something you have (device or key) without needing a password at all.
Detailed technical explanation
How to think about this question
Passwordless authentication in Microsoft Entra ID leverages the WebAuthn standard for FIDO2 security keys and Windows Hello for Business, which uses TPM-backed key pairs. The Microsoft Authenticator app implements the same device-bound key model, where the private key never leaves the device, and the sign-in challenge is validated against the public key stored in Entra ID. This approach eliminates password-related risks like phishing and credential theft.
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.
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: Microsoft Authenticator (phone sign-in) — Microsoft Authenticator (phone sign-in) enables passwordless authentication by using a cryptographic key pair tied to the user's device. When signing in, the user approves a notification on their phone, and the Authenticator app signs the challenge with the private key, eliminating the need for a password.
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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