Every so often, the electrons change direction. In alternating current, the electrons don't move steadily forward. Instead, they just move back and forth. When the electrons inalternating current switch direction, the direction of current and the voltage of the circuit reverses itself.

When a conductor is moved in a magnetic field, a voltage will be induced in that conductor.If this conductor is connected to a circuit-current will flow due to this induced voltage.
Now imagine a pair of magnetic poles, N & S in a round structure, like a clock, w/the N pole at 12 o’clock and the S pole at 6 o’clock.(By the way, one can not have just one pole magnet, they always come as a pair).Those poles will establish a magnetic field between them. Now, imagine a loop of wire between the two poles, rotating clockwise. When the wire at 12 o’clock passes the N pole, there will be a voltage induced in it that will cause a current to flow into this wire, while the other wire at 6 o’clock will have the current flowing out of the wire. When the loop of wire completes the turn, the wire that was near 12 o’clock is now near 6 o’clock, and the wire that was near 6 o’clock is near 12 o’clock. Now the currents in the wires reverse direction. This is how AC is generated.
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