An alternator generates current and voltage by the principles of electromagnetic induction. Accessories connected to the vehicles charging system require a steady supply of direct current at a relatively steady voltage level. You can't charge a battery with alternating current, so it must be rectified to direct current.
 

Fig 4 - Checking Ripple Voltage Ripple voltage or (AC voltage) can be measured by switching your DMM to AC and connecting the black lead to a good ground and the red lead to the "BAT" terminal on the back of the alternator, (not at the battery). A good alternator should measure less than .5 VAC with the engine running. A higher reading indicates damaged alternator diodes.

Fig 5 - Alternator Leakage Current To check alternator diode leakage, connect the multimeter in series with the alternator output terminal when the car is not running. Leakage current should be a couple of milliamps at most; more often, it will be on the order of 0.5 milliamps. Use care when disconnecting the alternator output wire; make sure the battery is disconnected first.