Terraform-Associate-003 HashiCorp Certified: Terraform Associate (003) (HCTA0-003) Free Practice Exam Questions (2026 Updated)

You can configure a backend in your Terraform code before initializing it. Initializing a backend will store the state file remotely and enable features like locking and workspaces. References = [Terraform Backends]

Detailed Explanation:

Rationale for Correct Answer (A):Terraform does not automatically update state references when resource identifiers are renamed. Instead, you must use a moved block in your configuration to inform Terraform how to map the old resource to the new one. This prevents Terraform from destroying and recreating the resource.

Analysis of Incorrect Options:

B & C: Incorrect syntax — moved requires from and to.

D: Incorrect, Terraform won’t auto-detect renames and will plan to destroy and recreate the resource unless a moved block is provided.

Key Concept:The moved block is essential for refactoring resource names without losing resources in state.

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.

References = Purpose of Terraform State, Terraform State, Managing State, Importing Infrastructure, [Command: plan], [Command: apply], [Command: refresh]

To import the contents of a local file as a string in Terraform, you can use the built-in file function. By specifying file("id_rsa.pub"), Terraform reads the contents of the id_rsa.pub file and uses it as a string within your Terraform configuration. This function is particularly useful for scenarios where you need to include file data directly into your configuration, such as including an SSH public key for provisioning cloud instances.References = This information is a standard part of Terraform's functionality with built-in functions, as outlined in Terraform's official documentation and commonly used in various Terraform configurations.

This is not a responsibility of a Terraform provider, as it does not make sense grammatically or logically. A Terraform provider is responsible for exposing resources and data sources based on an API, managing actions to take based on resource differences, and understanding API interactions with some service.

Detailed Explanation:

Rationale for Correct Answer (False):Any user with access to the saved plan file (terraform plan -out=planfile) can run terraform apply planfile. Terraform does not enforce user-specific restrictions.

Analysis of Incorrect Option:

True: Incorrect — Terraform doesn’t tie plan files to individual users.

Key Concept:Plan files ensure predictability but are not bound to the identity of the user.

The terraform validate command is used to check that your Terraform configuration files are syntactically valid and internally consistent. It is a useful command for ensuring your Terraform code is error-free before applying any changes to your infrastructure.

Detailed Explanation:

Rationale for Correct Answers:

B. View the execution plan: Correct — terraform plan shows what Terraform intends to do (create, update, or destroy).

C. Save a generated execution plan: Correct — using terraform plan -out=planfile lets you save the plan to apply later with terraform apply planfile.

Analysis of Incorrect Options:

A. Schedule runs in the future: Incorrect, Terraform does not provide scheduling; external tools (like cron, CI/CD) are required.

D. Execute a plan in a different workspace: Incorrect, execution happens in the current workspace; switching workspaces must be done before running the plan.

Key Concept:terraform plan is used for previewing and optionally saving an execution plan for controlled and predictable infrastructure changes.

The execution plan for terraform apply will not be the same as the one you ran locally with terraform plan, if your teammate manually modified the infrastructure component you are working on. This is because Terraform will refresh the state file before applying any changes, and will detect any differences between the state and the real resources.

Detailed Explanation:

Rationale for Correct Answer (C):Credentials should not be hardcoded in Terraform files. Best practice is to configure them via environment variables or secret managers.

Analysis of Incorrect Options:

A: Shared servers introduce risk and drift.

B: Storing secrets in config/version control is insecure.

D: Incorrect since option C is valid.

Key Concept:Separation of credentials from code is a Terraform security best practice.

The key principle of infrastructure as code that is not listed among the options is golden images. Golden images are pre-configured, ready-to-use virtual machine images that contain a specific set of software and configuration. They are often used to create multiple identical instances of the same environment, such as for testing or production. However, golden images are not a principle of infrastructure as code, but rather a technique that can be used with or without infrastructure as code. The other options are all key principles of infrastructure as code, as explained below:

Self-describing infrastructure: This means that the infrastructure is defined in code that describes its desired state, rather than in scripts that describe the steps to create it. This makes the infrastructure easier to understand, maintain, and reproduce.

Idempotence: This means that applying the same infrastructure code multiple times will always result in the same state, regardless of the initial state. This makes the infrastructure consistent and predictable, and avoids errors or conflicts caused by repeated actions.

Versioned infrastructure: This means that the infrastructure code is stored in a version control system, such as Git, that tracks the changes and history of the code. This makes the infrastructure code reusable, auditable, and collaborative, and enables practices such as branching, merging, and rollback. References = [Introduction to Infrastructure as Code with Terraform], [Infrastructure as Code in a Private or Public Cloud]

This is a secure way to inject sensitive variables into your Terraform run, as they will not be stored in any file or source code repository. You can also use environment variables or variable files with encryption to pass sensitive variables to Terraform.

The Terraform binary version and provider versions do not have to match each other in a single configuration. Terraform allows you to specify provider version constraints in the configuration’s terraform block, which can be different from the Terraform binary version1. Terraform will use the newest version of the provider that meets the configuration’s version constraints2. You can also use the dependency lock file to ensure Terraform is using the correct provider version3. References =

•1: Providers - Configuration Language | Terraform | HashiCorp Developer

•2: Multiple provider versions with Terraform - Stack Overflow

•3: Lock and upgrade provider versions | Terraform - HashiCorp Developer

Terraform keeps track of the infrastructure state via the state file. When you initially ran terraform plan, Terraform determined that the port should be changed from80 to 443. However, since another team member manually modified the load balancer, Terraform's local state file is now outdated.

When you run terraform apply, Terraform willcompare the expected state (from the plan) with the actual state (from the provider API).

Since the port is already set to443, but the local state file still shows80, Terraform willfail with an errordue to the state mismatch.

To resolve this, you should run terraform refresh or use terraform apply -refresh-only to update the local state before applying changes.

Official Terraform Documentation Reference:

State Management - HashiCorp Documentation

Managing Drift in Terraform

Detailed Explanation:

Rationale for Correct Answer:While HashiCorp publishes and maintains some official modules, many modules on the Terraform Registry are community-maintained. HashiCorp does not test or maintain all published modules. The Registry clearly distinguishes between official, partner, and community modules.

Analysis of Incorrect Options (Distractors):

A. True: Incorrect because not all Registry modules are maintained or tested by HashiCorp.

Key Concept:Understanding the difference between official, partner, and community modules in the Terraform Registry.

A provider configuration block is not required in every Terraform configuration. A provider configuration block can be omitted if its contents would otherwise be empty. Terraform assumes an empty default configuration for any provider that is not explicitly configured. However, some providers may require some configuration arguments (such as endpoint URLs or cloud regions) before they can be used. A provider’s documentation should list which configuration arguments it expects. For providers distributed on the Terraform Registry, versioned documentation is available on each provider’s page, via the “Documentation” link in the provider’s header1. References = [Provider Configuration]1

This will enable additional logging messages to find out from which paths Terraform is loading providers referenced in your Terraform configuration files, as it will set the log level to TRACE, which is the most verbose and detailed level.

 This is the command that you would use to access all of the attributes and details of a resource managed by Terraform, by providing the resource address as an argument. For example, terraform state show 'aws_instance.example' will show you all the information about the AWS instance named example.

Detailed Explanation:

Rationale for Correct Answer (True):Variables without defaults are required inputs. If the calling module doesn’t supply a value, Terraform will fail with an error at plan time.

Analysis of Incorrect Option:

False: Incorrect, because Terraform does not assume defaults when none are provided.

Key Concept:Terraform modules enforce required vs. optional variables depending on whether a default is set.