Adwords has its separate tracking to that available in Google Analytics.
Google Analytics uses completed goals as conversions- and this can be seen for all traffic sources such as email, organic SEO, Adwords, Social, referrals, etc.
The goals on the website can each have a separate form. (e.g. Contact us request, newsletter, or a checkout form for e-commerce.)
Each can be a separate goal, which is either an event or a page view.
If forms can all redirect when completed to thank you confirmation pages- each of these is recorded as a completed goal- when the page view happens
Google Analytics will record all completed online traffic sources - including Adwords separately.
Adwords uses a tracking script inside of URL page views. This placed on each thanks you, page for recording conversions.
Using Google Tag Manager, it is also possible to use event tracking instead of page view urls. These events can then be set up as goals in Google Analytics.
The Adwords tracking tags can then be run from within Google Tag Manager using page view triggers, (instead of putting lots of different codes on the website manually. This is especially useful for companies deploying lots of tags for Bing Ads, Facebook Ads, as well as Adwords etc.
Adwords now also has free telephone tracking by attributing the telephone call to the keyword and ad that generated the lead.