Terraform-Associate-003 HashiCorp Certified: Terraform Associate (003) (HCTA0-003) Questions and Answers

The terraform state list command lists all resources that are managed by Terraform in the current state file1. The terraform state show command shows the attributes of a single resource in the state file2. By using these two commands, you can compare the VM IDs in your list with the ones in the state file and identify which one is managed by Terraform.

terraform initdoes not create a main.tf file.

Itinitializesthe Terraform working directory, downloads provider plugins, and configures the backend.

Terraform does not generate an example configuration (main.tf); users must create it manually.

Official Terraform Documentation Reference:

terraform init - HashiCorp Documentation

Child modulesdo not automatically inheritvariables from the parent module.

To pass values from theparent moduleto thechild module, you mustexplicitly define input variablesin the child module and pass them in the parent module.

Example:

hcl

CopyEdit

module "example" {

source = "./child_module"

var1 = "value"

}

Official Terraform Documentation Reference:

Passing Variables to Modules

Variables declared within a module are only accessible within that module, unless they are explicitly exposed as output values1.

This is where Terraform cannot load a provider from, as it requires a compiled binary file that implements the provider protocol. You can load a provider from a plugins directory, a provider plugin cache, or the official HashiCorp distribution on releases.hashicorp.com.

The terraform plan command is used to create an execution plan. It allows you to see what actions Terraform will take to reach the desired state defined in your configuration files. It evaluates the current state and configuration, showing a detailed outline of the resources that will be created, updated, or destroyed. This is a critical step in the development process as it helps you verify that the changes you are about to apply will perform as expected, without actually modifying any state or infrastructure.

The terraform state rm commandremovesa resource from Terraform’s state file butdoes not destroythe resource in the actual infrastructure. It only removes Terraform’s knowledge of the resource, meaning Terraform will no longer manage it.

If you run terraform state rm on a resource, Terraform will forget that the resource exists.

However, the resource will still exist in the cloud or infrastructure provider.

If you later run terraform apply, Terraform may try torecreatethe resource because it is no longer present in its state file.

Official Terraform Documentation Reference:

terraform state rm - HashiCorp Documentation

Detailed 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.

In Terraform, theresource nameis the second argument in the resource block.

The structure of a resource block is:

resource "provider_resource_type" "resource_name" {

# Configuration settings

}

Here, the provider type isgoogle_compute_instance, and theresource nameis "main".

The name "test" is simply the value assigned to the name attribute, which is unrelated to the Terraform resource name.

"google" and "compute_instance" are part of the provider and resource type, not the resource name.

Official Terraform Documentation Reference:

Terraform Resource Documentation

The best way to specify a tag of v1.0.0 when referencing a module stored in Git is to append ?ref=v1.0.0 argument to the source path. This tells Terraform to use a specific Git reference, such as a branch, tag, or commit, when fetching the module source code. For example, source = "git::https://example.com/vpc.git?ref=v1.0.0 ". This ensures that the module version is consistent and reproducible across different environments. References = [Module Sources], [Module Versions]

Infrastructure as Code (IaC) provides several benefits, including the ability to version control infrastructure, reuse code, and automate infrastructure management. However, IaC is typically associated with declarative configuration files and does not inherently provide a graphical user interface (GUI). A GUI is a feature that may be provided by specific tools or platforms built on top of IaC principles but is not a direct benefit of IaC itself1.

References = The benefits of IaC can be verified from the official HashiCorp documentation on “What is Infrastructure as Code with Terraform?” provided by HashiCorp Developer1.

The terraform import command is not part of any other Terraform workflow. It must be explicitly invoked by the user with the appropriate arguments, such as the resource address and the ID of the existing infrastructure to import. References = [Importing Infrastructure]

Before using a remote backend in Terraform, it is mandatory to run terraform init. This command initializes a Terraform working directory, which includes configuring the backend. If a remote backend is specified, terraform init will set up the working directory to use it, including copying any existing state to the remote backend if necessary.References = This principle is a fundamental part of workingwith Terraform and its backends, as outlined in general Terraform documentation and best practices. The specific HashiCorp Terraform Associate (003) study materials in the provided files did not include direct references to this information.

Terraform allows usingprivate module sourceshosted in:

C (Internally hosted VCS platforms, e.g., GitLab, Bitbucket, GitHub Enterprise)✅

D (Private GitHub repositories)✅

A (Public GitHub repository)❌–GitHubis supported, but apublic repo is not "private".

B (Public Terraform Registry)❌–The public registryis not a private source.

Official Terraform Documentation Reference:

Terraform Module Sources

terraform validate does not confirm that your infrastructure matches the Terraform state file. It only checks whether the configuration files in a directory are syntactically valid and internally consistent3. To confirm that your infrastructure matches the Terraform state file, you need to use terraform plan or terraform apply with the -refresh-only option.

Referencing Terraform Built-in Functions:

✅chomp: removes trailing newlines

✅join: combines list into string

✅split: splits string into list

❌slice:is nota valid Terraform string function (it's used in other languages like Python)

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.

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]

 The concept of infrastructure as code (IaC) is to define and manage infrastructure using code, rather than manual processes or GUI tools. A script that contains a series of public cloud CLI commands is an example of IaC, because it uses code to provision resources into a public cloud. The other options are not examples of IaC, because they involve manual or interactive actions, such as running curl commands, sending REST requests, or entering commands into a console. References = [Introduction to Infrastructure as Code with Terraform] and [Infrastructure as Code]

Runningterraform destroywill show all resources that will be deleted before prompting for approval. You can also runterraform plan -destroyto simulate the destruction without actually applying it, which is useful for reviewing the planned changes.

C (✅Correct)– If changes require aresource replacement(e.g., changing an immutable attribute like instance type), Terraform willdestroy and recreate the resource.

E (✅Correct)– Terraform only appliesthe configuration in the current directory or workspace.

Changes invoked by terraform apply take effect once the resource provider has fulfilled the request, not after Terraform has updated the state file or immediately. The state file is only a reflection of the real resources, not a source of truth.

The required_providers block is used to specify the provider versions that the configuration can work with. The version argument accepts a version constraint string, which must be enclosed in double quotes. The version constraint string can use operators such as >=, ~>, =, etc. to specify the minimum, maximum, or exact version of the provider. For example, version = ">= 3.1" means that theconfiguration can work with any provider version that is 3.1 or higher. References = [Provider Requirements] and [Version Constraints]

You should run terraform fmt to rewrite all Terraform configurations within the current working directory to conform to Terraform-style conventions. This command applies a subset of the Terraform language style conventions, along with other minor adjustments for readability. It is recommended to use this command to ensure consistency of style across different Terraform codebases. The command is optional, opinionated, and has no customization options, but it can help you and your team understand the code more quickly and easily. References = : Command: fmt : Using Terraform fmt Command to Format Your Terraform Code

Sentinel policies are checked after the plan stage of a Terraform run, but before it can be confirmed or the terraform apply is executed3. This allows you to enforce rules on your infrastructure before it is created or modified.

You should run terraform init after you start coding a new Terraform project and before you run terraform plan for the first time. This command will initialize the working directory by downloading the required providers and modules, creating the initial state file, and performing other necessary tasks. References = : Initialize a Terraform Project

This is what state locking accomplishes, by preventing other users from modifying the state file while a Terraform operation is in progress. This prevents conflicts and data loss.

These are two ways to produce a list of the IDs from a list of objects that have an attribute id, using either a for expression or a splat expression syntax.

The terraform apply command changes both the cloud infrastructure and the state file after you approve the execution plan. The command creates, updates, or destroys the infrastructure resources to match theconfiguration. It also updates the state file to reflect the new state of the infrastructure. The .terraform directory, the execution plan, and the Terraform code are not changed by the terraform apply command. References = Command: apply and Purpose of Terraform State

You can configure Terraform to log to a file using the TF_LOG environment variable. This variable can be set to one of the log levels: TRACE, DEBUG, INFO, WARN or ERROR. You can also use the TF_LOG_PATH environment variable to specify a custom log file location. References = : Debugging Terraform

Theversion argumentin a module ensures Terraform uses aspecific versionof a module, preventing unintended updates.

A (source)– Specifies the module source butdoes not control versioning.

B (count)– Controls how many instances of a resource/module exist,not updates.

D (lifecycle)– Controls how resources behavebut does not control module versioning.

Official Terraform Documentation Reference:

Module Version Constraints

Not all standard backend types support state locking and remote operations like plan, apply, and destroy. For example, the local backend does not support remote operations and state locking. State locking is a feature that ensures that no two users can make changes to the state file at the same time, which is crucial for preventing race conditions. Remote operations allow running Terraform commands on a remote server, which is supported by some backends like remote or consul, but not all.

E (✅Correct)–IaC aims to eliminate manual cloud console workflowsby using code-based automation.

A, B, C (✅Advantages of IaC)– IaC enablesself-service deployment, API-driven workflows, and dynamic resource scaling.

D (diff command)– While useful, troubleshooting via diff is not acore advantageof IaC.

Official Terraform Documentation Reference:

What is Infrastructure as Code?

The terraform init command is required before using a new backend or integrating with HCP Terraform/Terraform Cloud.

terraform init initializes the working directory and sets up the backend, downloading necessary provider plugins and modules.

If the backend configuration changes, Terraform willrequirere-initialization to apply those changes.

Without running terraform init, Terraform willfailto use a new backend or remote Terraform Cloud workspace.

Official Terraform Documentation Reference:

terraform init - HashiCorp Documentation

terraform initretrieves and caches providers and modules, butonly for explicitly declared modulesin the configuration.

If a module isadded or updated, terraform init needs to be re-run to download the new version.

Terraform does not automatically cache all remote modules unless they are explicitly referenced in the configuration.

Official Terraform Documentation Reference:

terraform init - HashiCorp Documentation

Terraform providers are not part of the Terraform core binary. Providers are distributed separately from Terraform itself and have their own release cadence and version numbers. Providers are plugins that Terraform uses to interact with various APIs, such as cloud providers, SaaS providers, and other services. You can find and install providers from the Terraform Registry, which hosts providers for most major infrastructure platforms. You can also load providers from a local mirror or cache, or develop your own custom providers. To use a provider in your Terraform configuration, you need to declare it in the provider requirements block and optionally configure its settings in the provider block. References = : Providers - Configuration Language | Terraform : Terraform Registry - Providers Overview | Terraform

This is the command that always causes a state file to be updated with changes that might have been made outside of Terraform, as it will only refresh the state file with the current status of the real resources, without making any changes to them or creating a plan.

To import existing resources into Terraform, you need to do two things1:

Write a resource configuration block for each resource, matching the type and name used in your state file.

Run terraform import for each resource, specifying its address and ID. There is no such command as terraform Import-gcp, and provisioning new VMs with the same names will not import them into Terraform.

Detailed Explanation:

Rationale for Correct Answer (D):The Terraform Registry provides documentation for published modules, including:

Required inputs (variables you must supply).

Optional inputs with defaults (so you know what you can override).

Outputs (what values the module returns for use elsewhere).

Therefore, the correct answer is all of the above.

Analysis of Incorrect Options:

A. Required inputs only: Incomplete.

B. Outputs only: Incomplete.

C. Optional inputs only: Incomplete.

D. All of the above: Correct because the Registry provides all relevant documentation.

Key Concept:Terraform Registry modules include inputs, outputs, and usage details, enabling reusability and modular design.

The public Terraform Module Registry is free to use, as it is a public service that hosts thousands of self-contained packages called modules that are used to provision infrastructure. You can browse, use, and publish modules to the registry without any cost.

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.

Destroy Command Options: Theterraform destroycommand is the correct method to destroy resources, and it requires either manual approval or the -auto-approve flag.

Unsupported Triggering Method: The--destroy flagis not a recognized option for plan or apply commands, making B the correct answer as it isnota valid way to initiate resource destruction.

For more on destroying resources, refer to theterraform destroy command documentationin the Terraform CLI reference.

Terraform is built on a plugin-based architecture, enabling developers to extend Terraform by writing new plugins or compiling modified versions of existing plugins1. Terraform plugins are executable binaries written in Go that expose an implementation for a specific service, such as a cloud resource, SaaS platform, or API2. If there is no existing provider for your API, you can create one using the Terraform Plugin SDK3 or the Terraform Plugin Framework4. References =

•1: Plugin Development - How Terraform Works With Plugins | Terraform | HashiCorp Developer

•2: Lab: Terraform Plug-in Based Architecture - GitHub

•3: Terraform Plugin SDK - Terraform by HashiCorp

•4: HashiCorp Terraform Plugin Framework Now Generally Available

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.

The terraform fmt command is used to rewrite Terraform configuration files to a canonical format and style. This command applies a subset of the Terraform language style conventions, along with other minor adjustments for readability. Running this command on your configuration files before committing them to source control can help ensure consistency of style between different Terraform codebases, and can also make diffs easier to read. You can also use the -check and -diff options to check if the files are formatted and display the formatting changes respectively2. Running the terraform fmt command during the code linting phase of your CI/CD process can help automate this process and enforce the formatting standards for your team. References = [Command: fmt]2

Detailed Explanation:

Rationale for Correct Answer (True):When terraform apply completes successfully, Terraform prints output values. Outputs from both root and child modules are displayed, but child module outputs must be explicitly exposed through the root module outputs to be visible at the CLI.

Analysis of Incorrect Option:

False: Incorrect, because Terraform does display output values, but only if they are exposed from child modules to the root module.

Key Concept:Outputs help you extract important information (e.g., IP addresses, resource IDs) from your configuration.

Detailed Explanation:

Rationale for Correct Answer (B):terraform import allows Terraform to associate existing resources (created outside of Terraform or by another tool) with a Terraform configuration by writing them into the state file. After import, Terraform can manage those resources.

Analysis of Incorrect Options:

A. From one state file to another: Incorrect, import does not transfer between state files.

C. Importing a module: Incorrect, modules are defined in configuration, not imported.

D. Import all infrastructure: Incorrect, import is per-resource, not bulk.

E. Provider configuration transfer: Incorrect, provider configs are in .tf files, not imported with this command.

Key Concept:The terraform import command bridges existing resources with Terraform state management.

Setting the TF_LOG environment variable to DEBUG causes debug messages to be logged into stdout, along with other log levels such as TRACE, INFO, WARN, and ERROR. This can be useful for troubleshooting or debugging purposes.

This is not a valid backend for Terraform, as it does not support locking or versioning of state files4. The other options are valid backends that can store state files in a central location.

Detailed Explanation:

Rationale for Correct Answer (B):The file() function reads a file from disk and returns its content as a string. This is commonly used for public keys (.pub files).

Analysis of Incorrect Options:

A. fileset(): Returns a set of filenames matching a pattern, not file contents.

C. filebase64(): Reads file and returns Base64 encoded string — unnecessary for .pub.

D. templatefile(): Used for rendering templates with variables, not raw file contents.

Key Concept:Terraform’s file() function is used for injecting file content directly.

When upgrading a provider,you must run terraform init -upgrade to install the new version.

Thisdownloads the latest provider versionand updates the local dependency cache.

terraform refresh(A)only updates the state file but doesnotupgrade providers.

terraform apply -upgrade(C)isnot a valid command.

terraform version can be upgraded separately, but(D)does not install a new provider version.

Official Terraform Documentation Reference:

Upgrading Providers in Terraform

Detailed Explanation:

Rationale for Correct Answer (True):Local values (locals {}) are scoped to a module and are not directly visible outside. To make them available to callers, you must define outputs in the module. Outputs act as the interface for exposing values from a child module to the root module.

Analysis of Incorrect Option:

False: Incorrect, because locals cannot be exposed directly; only via outputs.

Key Concept:Outputs are the way to expose information outside of a module.

It is not a best practice to store secret data in the same version control repository as your Terraform configuration, as it could expose your sensitive information to unauthorized parties or compromise your security. You should use environment variables, vaults, or other mechanisms to store and provide secret data to Terraform.

This is a key benefit of the Terraform state file, as it stores and tracks the metadata and attributes of the resources that are managed by Terraform, and allows Terraform to compare the current state with the desired state expressed by your configuration files.

 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.

Module version is optional to reference a module on the Terraform Module Registry. If you omit the version constraint, Terraform will automatically use the latest available version of the module

Detailed Explanation:

Rationale for Correct Answer (B):Terraform uses a state file to map real-world resources to your configuration. By default, if no backend is explicitly defined, Terraform stores this information in a file named terraform.tfstate located in the same directory as your configuration files. This local state file is critical for Terraform to understand what infrastructure already exists and to plan updates correctly.

Analysis of Incorrect Options (Distractors):

A. .terraform.d (home directory subdirectory):This is used for storing plugins and some global settings, not for resource state.

C. .terraform.lock.hcl (lock file):This file locks provider versions to ensure reproducible runs, but it does not contain resource state information.

D. .terraform (subdirectory):This folder contains cached provider binaries and related data, but not the actual state file.

Key Concept:Terraform state management is at the core of "Implement and Maintain State." Understanding where Terraform stores the state by default is critical because state files should often be stored remotely (using a backend like S3, GCS, or Terraform Cloud) for collaboration and reliability.

To make Terraform's logging more verbose for troubleshooting purposes, you must configure the TF_LOG environment variable. This variable controls the level of logging and can be set to TRACE, DEBUG, INFO, WARN, or ERROR, with TRACE providing the most verbose output.References = Detailed debugging instructions and the use of environment variables like TF_LOG for increasing verbosity are part of Terraform's standard debugging practices

These are some of the ways that a ticket-based system can slow down infrastructure provisioning and limit the ability to scale, as they introduce delays, bottlenecks, and manual interventions in the process of creating and modifying infrastructure.

When you use a remote backend that needs authentication, HashiCorp recommends that you:

The Terraform collection type that should be used to store key/value pairs is map. A map is a collection of values that are accessed by arbitrary labels, called keys. The keys and values can be of any type, but the keys must be unique within a map. For example, var = { key1 = "value1", key2 = "value2" } is a map with two key/value pairs. Maps are useful for grouping related values together, such as configuration options or metadata. References = [Collection Types], [Map Type Constraints]

The best way to automatically and proactively enforce the security control that new AWS S3 buckets must be private and encrypted at rest is with a Sentinel policy, which runs before every apply. Sentinel is a policy as code framework that allows you to define and enforce logic-based policies for your infrastructure. Terraform Cloud supports Sentinel policies for all paid tiers, and can run them before any terraform plan or terraform apply operation. You can write a Sentinel policy that checks the configuration of the S3 buckets and ensures that they have the proper settings for privacy and encryption, and then assign the policy to your Terraform Cloud organization or workspace. This way, Terraform Cloud will prevent any changes that violate the policy from being applied. References = [Sentinel Policy Framework], [Manage Policies in Terraform Cloud], [Write and Test Sentinel Policies for Terraform]

The description argument for Terraform variables and outputs is purely for documentation purposes and isnotstored in the Terraform state file.

Terraform variables and outputs can have descriptions for readability and clarity in .tf files.

However, these descriptions are not retained in the Terraform state file.

The state file only stores actual values and references needed for resource management, not metadata such as descriptions.

Official Terraform Documentation Reference:

Terraform Variables - HashiCorp Documentation

Terraform Outputs - HashiCorp Documentation

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.

The purpose of state in Terraform is to keep track of the real-world resources managed by Terraform, mapping them to the configuration. The state file contains metadata about these resources, such as resource IDs and other important attributes, which Terraform uses to plan and manage infrastructure changes. The state enables Terraform to know what resources are managed by which configurations and helps in maintaining the desired state of the infrastructure.References = This role of state in Terraform is outlined in Terraform's official documentation, emphasizing its function in mapping configuration to real-world resources and storing vital metadata .

The provider for theaws_vpcresource isaws, as the resource type begins withaws_, which denotes that it is managed by the AWS provider.

This is not a valid Terraform collection type, as Terraform only supports three collection types: list, map, and set. A tree is a data structure that consists of nodes with parent-child relationships, which is not supported by Terraform.

This is the recommended way to use a remote backend that needs authentication, as it allows you to provide the credentials via environment variables, command-line arguments, or interactive prompts, without storing them in the Terraform configuration files.

You cannot access state stored with the local backend by using the terraform_remote_state data source. The terraform_remote_state data source is used to retrieve the root module output values from some other Terraform configuration using the latest state snapshot from the remote backend. It requires a backend that supports remote state storage, such as S3, Consul, AzureRM, or GCS. The local backend stores the state file locally on the filesystem, which terraform_remote_state cannot access.

In Terraform Cloud, you can switch between workspaces using both the web UI and CLI. The statement that you "must use the CLI" is false. Workspaces can securely store cloud credentials, offer role-based access control, and integrate with VCS to trigger plan and apply operations.