How can I test a 2-wire sensor?

Replaced a stator on a friend's motorcycle and it also has a crankshaft position sensor in there that comes with the replacement. 
 

got it all back together and it cranks but doesn't fire.  I can see no other reason for it not to start and wondered if maybe this cps sensor is bad.  How can I test it??  Hopefully there's a way to test with a multimeter. 
 

He drove it into the shop so it is likely something we touched. 

Best done with an oscilloscope to properly view the pattern, but a multimeter set to AC voltage should register some voltage during cranking. 

Good to know.  
 

It was the sensor. 
 

this is what we pulled out.  Bad stator and good cps. 
 

this is the new one after it didnt start

we put the factory cps back in and he drove home 

In reply to jfryjfry :

Back a long time ago, I saw the result of a crank position sensor colliding with the tone wheel.  What a mess that was- lots of really fine copper wrapped all over the place.  This reminded me of that.

alfadriver said:

In reply to jfryjfry :

Back a long time ago, I saw the result of a crank position sensor colliding with the tone wheel.  What a mess that was- lots of really fine copper wrapped all over the place.  This reminded me of that.

Try drilling an ABS sensor out, same thing.  It is amazing how copper can be extruded that fine, and how much it goes everywhere when attacked with a drill.

Minor pedantic whine: Crank sensors are CKP, cam sensors are CMP.  Not sure if this in some book of standards somewhere, but looking for those terms will make searching easier.