diff --git a/openstackclient/tests/functional/common/test_args.py b/openstackclient/tests/functional/common/test_args.py
new file mode 100644
index 000000000..dd1fd0fb2
--- /dev/null
+++ b/openstackclient/tests/functional/common/test_args.py
@@ -0,0 +1,79 @@
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+import json
+
+from openstackclient.tests.functional import base
+
+
+class ArgumentTests(base.TestCase):
+    """Functional tests for command line arguments"""
+
+    def test_default_auth_type(self):
+        cmd_output = json.loads(self.openstack(
+            'configuration show -f json',
+            cloud='',
+        ))
+        self.assertIsNotNone(cmd_output)
+        self.assertIn(
+            'auth_type',
+            cmd_output.keys(),
+        )
+        self.assertEqual(
+            'password',
+            cmd_output['auth_type'],
+        )
+
+    def test_auth_type_none(self):
+        cmd_output = json.loads(self.openstack(
+            'configuration show -f json',
+            cloud=None,
+        ))
+        self.assertIsNotNone(cmd_output)
+        self.assertIn(
+            'auth_type',
+            cmd_output.keys(),
+        )
+        self.assertEqual(
+            'none',
+            cmd_output['auth_type'],
+        )
+
+    def test_auth_type_token_endpoint_opt(self):
+        cmd_output = json.loads(self.openstack(
+            'configuration show -f json --os-auth-type token_endpoint',
+            cloud=None,
+        ))
+        self.assertIsNotNone(cmd_output)
+        self.assertIn(
+            'auth_type',
+            cmd_output.keys(),
+        )
+        self.assertEqual(
+            'token_endpoint',
+            cmd_output['auth_type'],
+        )
+
+    def test_auth_type_password_opt(self):
+        cmd_output = json.loads(self.openstack(
+            'configuration show -f json --os-auth-type password',
+            cloud=None,
+        ))
+        self.assertIsNotNone(cmd_output)
+        self.assertIn(
+            'auth_type',
+            cmd_output.keys(),
+        )
+        self.assertEqual(
+            'password',
+            cmd_output['auth_type'],
+        )