Outrageous said:
Then my question is Since alternating current is not a steady constant current, how does it transfer?
It is the energy that is transferred - the power station pulls and pushes on the electrons in the wire. That makes all the electrons in the wire go back and forth. If you hook some appliance up to the wire, then it is harder for the electrons to get pushed and pulled (because they have to go through the appliance as well) and so the power company has to supply more energy into the push and pull. That's what the meter is reading - how much extra work the power company has to do to push and pull electrons through your house/flat/apartment/whatever.
Again think of the train - the engine is in one place pushing and pulling the carriages - but the energy goes through the links to all the carriages even when all the engine does is go backwards and forwards.
Another way: think again of water in a pipe flowing in a circle, with an appliance being, in this case, a water-wheel, somewhere in the path.
You can see that turning on the pump will make wheels turn anywhere in the loop: if the pump alternates forward and backwards them the wheels will turn forwards and backwards. The more wheels, the harder the pump making the flow has to work.
The power transferred in this way is a full wave.
In some devices, like a light bulb, the direction of the current does not matter. The filament glows whether the electrons go forward or backward through it.
For some it does matter - so the current has to be adjusted so the backwards part goes by a different path to the forwards part and the whole thing smoothed out. The process is called "rectification" which can be "half-wave" (where the backwards part is just dumped) and "full wave" (where you use both parts of the cycle).
The details of power transmission is a big topic. Read also:
Wikipedia on Power Transmission
http://www.allaboutcircuits.com/vol_2/chpt_1/1.html
AC Circuits - more advanced
Youtube:
... the associated vids explain other aspects of AC that you have asked about.