The document describes how to test diodes and transistors using a multimeter. For diodes, connecting the multimeter one way across the diode should show low resistance, while the opposite connection shows high resistance, verifying the diode's one-way conduction. Transistors have three terminals - emitter, base, and collector. The document outlines steps to identify NPN and PNP transistors by checking for voltage readings between different terminal combinations in diode test mode.