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Terraform 004 · HashiCorp · HCP Terraform · Bank updated 2026-11-03

Terraform 004 practice questions: HCP Terraform

5 free questions from 24 on this area · answer and explanation for each · no sign-up

These 5 questions come from the HCP Terraform section of our Terraform 004 bank (24 questions on this area, which carries 12.5% of the real exam). Every question is original, with the correct answer explained and linked to the source it is drawn from.

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1/5 · HCP Terraform
A developer's working directory has a cloud block that targets an HCP Terraform workspace connected to the team's GitHub repository. The developer edits a .tf file locally and runs terraform apply. What happens?
AHCP Terraform runs the apply remotely, using the local working directory's files
BHCP Terraform refuses the apply and starts a speculative plan of the local files instead
CHCP Terraform runs the apply remotely, using the files on the branch the workspace tracks
DHCP Terraform refuses the apply; the change has to be merged into the tracked branch
Answer: D. The CLI-driven run workflow page (Remote Applies) says that users can trigger remote applies from the CLI in workspaces that are not connected to a VCS repository, and its note adds: 'You cannot run remote applies in workspaces that are linked to a VCS repository, since the repository serves as the workspace’s source of truth. To apply changes in a VCS-linked workspace, merge your changes to the designated branch.' Speculative plans started with terraform plan, by contrast, work in any workspace where you have permission to queue plans. Source: HashiCorp Terraform Associate (004) exam objectives and Terraform documentation
2/5 · HCP Terraform · hard
An organization on the HCP Terraform Essentials plan has a workspace whose state file holds: one aws_vpc, 24 aws_instance objects created with count, 3 aws_subnet objects created with for_each, 12 data sources, 6 null_resource objects and 4 terraform_data resources. How many managed resources does HCP Terraform count for this workspace when it calculates usage?
A32 managed resources
B28 managed resources
C40 managed resources
D50 managed resources
Answer: B. HCP Terraform counts a resource in a managed state file where mode = "managed", including resources created by count and for_each. It does not count null_resource, terraform_data, data sources, or local values and variables. So 1 + 24 + 3 = 28. Source: tf-cloud-docs-overview, Managed resources / What does not count as a managed resource, p. 1 Source: HashiCorp Terraform Associate (004) exam objectives and Terraform documentation
3/5 · HCP Terraform · easy
An organization on the Standard plan wants HCP Terraform to keep checking, after infrastructure is provisioned, that the custom conditions written in a workspace's configuration still pass. Which health assessment evaluation provides this?
AResource drift detection
BContinuous validation
CSpeculative planning
DRun task evaluation
Answer: B. Health assessments, available on Standard and Premium, include drift detection (real infrastructure matches configuration) and continuous validation (custom conditions in the configuration continue to pass after provisioning). Source: tf-cloud-docs-workspaces, Workspace Health, p. 1 Source: HashiCorp Terraform Associate (004) exam objectives and Terraform documentation
4/5 · HCP Terraform · hard
A platform team rolls out one Stack to three environments. How does HCP Terraform organize remote state for them?
Aall deployments share one remote state stored with the Stack
Bremote state is stored in the project and shared by sibling Stacks
Cremote state is kept per component and merged into one view
Deach deployment stores and updates its own isolated remote state
Answer: D. HCP Terraform acts as a remote backend. In workspaces, state storage is tied to the workspace; in Stacks, each deployment stores and updates its own isolated remote state. Source: tf-cloud-docs-overview, Remote state management and data storage, p. 1 Source: HashiCorp Terraform Associate (004) exam objectives and Terraform documentation
5/5 · HCP Terraform
A consultant belongs to two HCP Terraform organizations. In the client's organization on the Standard plan she sees cost estimates on her runs. In her own organization on the Essentials plan the same feature is missing, although she uses the same user account. What explains the difference?
Aeach organization's own plan decides which features she can use
Bher user account holds one plan that applies in every organization
Ccost estimation is switched on per workspace and is off in hers
Dthe VCS provider linked to an organization determines its features
Answer: A. HCP Terraform manages plans and billing at the organization level. A user can belong to several organizations that subscribe to different plans, and the set of features depends on which organization the user works in. Cost estimation is a Standard and Premium feature, so it appears in one organization and not in the other. Source: tf-cloud-docs-overview, Subscription plans, p. 1 Source: HashiCorp Terraform Associate (004) exam objectives and Terraform documentation
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Infrastructure as Code (IaC) with Terraform29 qTerraform fundamentals38 qCore Terraform workflow33 qTerraform configuration29 qTerraform modules28 qTerraform state management44 qMaintain infrastructure with Terraform23 q

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