Terraform Associate 004 Certification Exam Guide + Practice Questions

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Comprehensive Terraform Associate 004 certification exam guide covering exam overview, skills measured, preparation tips, and practice questions with detailed explanations.

Terraform Associate 004 Exam Guide

This Terraform Associate 004 exam focuses on practical knowledge and real-world application scenarios related to the subject area. It evaluates your ability to understand core concepts, apply best practices, and make informed decisions in realistic situations rather than relying solely on memorization.

This page provides a structured exam guide, including exam focus areas, skills measured, preparation recommendations, and practice questions with explanations to support effective learning.

 

Exam Overview

The Terraform Associate 004 exam typically emphasizes how concepts are used in professional environments, testing both theoretical understanding and practical problem-solving skills.

 

Skills Measured

  • Understanding of core concepts and terminology
  • Ability to apply knowledge to practical scenarios
  • Analysis and evaluation of solution options
  • Identification of best practices and common use cases

 

Preparation Tips

Successful candidates combine conceptual understanding with hands-on practice. Reviewing measured skills and working through scenario-based questions is strongly recommended.

 

Practice Questions for Terraform Associate 004 Exam

The following practice questions are designed to reinforce key Terraform Associate 004 exam concepts and reflect common scenario-based decision points tested in the certification.

Question#1

Which option cannot be used to keep secrets out of Terraform configuration files?

A. A Terraform provider
B. Environment variables
C. A -var flag
D. secure string

Explanation:
A secure string is not a valid option to keep secrets out of Terraform configuration files. A secure string is a feature of AWS Systems Manager Parameter Store that allows you to store sensitive data encrypted with a KMS key. However, Terraform does not support secure strings natively and requires a custom data source to retrieve them. The other options are valid ways to keep secrets out of Terraform configuration files. A Terraform provider can expose secrets as data sources that can be referenced in the configuration. Environment variables can be used to set values for input variables that contain secrets. A -var flag can be used to pass values for input variables that contain secrets from the command line or a file.
Reference = [AWS Systems Manager Parameter Store], [Terraform AWS Provider Issue #55], [Terraform Providers], [Terraform Input Variables]

Question#2

You must use different Terraform commands depending on the cloud provider you use.

A. True
B. False

Explanation:
You do not need to use different Terraform commands depending on the cloud provider you use. Terraform commands are consistent across different providers, as they operate on the Terraform configuration files and state files, not on the provider APIs directly.
From Terraform CLI Overview:
"Terraform provides a consistent CLI workflow regardless of which cloud or service you’re managing." The same Terraform commands work across all providers via plugins.

Question#3

Module variable assignments are inherited from the parent module and you do not need to explicitly set them.

A. True
B. False

Explanation:
Module variable assignments are not inherited from the parent module and you need to explicitly set them using the source argument. This allows you to customize the behavior of each module instance.

Question#4

When using Terraform to deploy resources into Azure, which scenarios are true regarding state files? (Choose two.)

A. When you change a Terraform-managed resource via the Azure Cloud Console, Terraform updates the state file to reflect the change during the next plan or apply
B. Changing resources via the Azure Cloud Console records the change in the current state file
C. When you change a resource via the Azure Cloud Console, Terraform records the changes in a new state file
D. Changing resources via the Azure Cloud Console does not update current state file

Explanation:
Terraform state is a representation of the infrastructure that Terraform manages. Terraform uses state to track the current status of the resources it creates and to plan future changes. However, Terraform state is not aware of any changes made to the resources outside of Terraform, such as through the Azure Cloud Console, the Azure CLI, or the Azure API. Therefore, changing resources via the Azure Cloud Console does not update the current state file, and it may cause inconsistencies or conflicts with Terraform’s desired configuration. To avoid this, it is recommended to manage resources exclusively through Terraform or to use the terraform import command to bring existing resources under Terraform’s control.
When you change a Terraform-managed resource via the Azure Cloud Console, Terraform does not immediately update the state file to reflect the change. However, the next time you run terraform plan or terraform apply, Terraform will compare the state file with the actual state of the resources in Azure and detect any drifts or differences. Terraform will then update the state file to match the current state of the resources and show you the proposed changes in the execution plan. Depending on the configuration and the change, Terraform may try to undo the change, modify the resource further, or recreate the resource entirely. To avoid unexpected or destructive changes, it is recommended to review the execution plan carefully before applying it or to use the terraform refresh command to update the state file without applying any changes.
Reference = Purpose of Terraform State, Terraform State, Managing State, Importing Infrastructure, [Command: plan], [Command: apply], [Command: refresh]

Question#5

You are tasked with making a change to an infrastructure stack running in a public cloud using HCP Terraform/Terraform Cloud.
Which pattern follows IaC best practices?

A. Make the change via the public cloud API endpoint.
B. Submit a pull request and wait for an approved merge of the proposed changes.
C. Clone the repository containing your infrastructure code and then run the code.
D. Use the public cloud console to make the change after approval.
E. Make the change programmatically via the cloud CL

Explanation:
Rationale for Correct Answer (B):
IaC best practice is to manage infrastructure through version-controlled code. Changes should be reviewed and approved (via PRs), ensuring collaboration, traceability, and automation.
Analysis of Incorrect Options:
A, D, E: Making direct/manual changes bypasses IaC practices and causes drift.
C: Running code without PR review skips collaboration and approval. Key Concept:
Infrastructure as Code emphasizes version control + peer review + automation.
Reference: Terraform Exam Objective C Understand Infrastructure as Code (IaC) Concepts.

Disclaimer

This page is for educational and exam preparation reference only. It is not affiliated with HashiCorp, Terraform Associate, or the official exam provider. Candidates should refer to official documentation and training for authoritative information.

Exam Code: Terraform Associate 004Q & A: 259 Q&AsUpdated:  2026-02-24

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