No reason to call yourself a moron. It's a valid question.
DAC = Digital to Analog Converter. Conversely, ADC = Analog to Digital Converter.
Receivers and amps amplify an analog signal, although there are newer receivers/amps that use digital amplification. So incoming digital signals must be converted to analog before amplification. When you play, for example, a CD and the cd/dvd player is connected to the receiver with a digital cable, the receiver must convert the digital signal to analog before it can be amplified and that is the function of the dacs. That's the high level overview.
I can elaborate further if you want, but maybe it would be better if you just ask any further questions you have.