AC circuit involves alternating current that periodically reverses direction and changes its magnitude continuously with time in contrast to DC current which flows in only one direction. An AC circuit contains resistance, capacitance and inductance which cause the current and voltage to be out of phase with each other. AC current is important because it can be transformed into different voltages and controlled by various circuit components, allowing efficient long-distance power transmission. Common applications of AC circuits include power generation, transmission and distribution as well as powering electric motors and household appliances.