Create a new VM instance using application images, SQL server on Windows, it will provision a new Windows VM, with Microsoft SQL server installed, is it correct?
That is correct indeed.
Once deployed, the instance will be running Windows Server with SQL Server preinstalled, ready to be used.
You can read more about GCE images in this article.
You will be provided a Windows Server instance with an external IP address, appropriate firefall rules set, as well as login credentials for the local Windows user who is member of the local Administrators group. You can use any RDP client for Windows or Linux to connect to the external IP address of the virtual machine and logon with the credentials provided.
It's recommended to assign a static external IP address to the VM instance later on.
The VM instance will be member of the Workgroup. That is up-to-you to decide if the VM should join any MS Active Directory domain.
Microsoft licenses are provided as part of the instance, and you will be billed accordingly with the VM size and utilization time.
You can use both Windows authentication or SQL Server authentication to connect to the Database. For the latter case the
sa user password is provided in the VM metadata field
Custom metadata > sqlsalogin
For detailed authentication instructions please see the following links: