Best Answer: An inverter is an electronic circuit for converting direct current (DC) to alternating current (AC). Inverters are used in a wide range of applications, from small switched power supplies for a computer to large electric utility applications to transport bulk power.n terms of electrical power, an inverter converts direct current (DC-as in batteries) to alternating current (AC-as in what is present at electrical outlets). An inverter would be used in a car, for example, to run an AC-powered appliance (laptop computer for example) in the absence of an AC outlet.