How google record Conversion?

Dear webmaster,

i am little confused about the conversion tracking in adword account.

Someone told me that when user click on ads Google server send a cookies on user browser and when the user finally go to the confirmation page again cookies of confirmation page is saved on browser and cookies are match over there and Google record conversion.....

i don't know that i am right or wrong so i want your opinion on this matter?

I am waiting for your positive reply.

Thanks!

That's basically how it works. There's no other way to do it, you have to use cookies.

https://www.google.com/adwords/select/library/convtracking_jan05.pdf

Tad dated but helpful.

when the user clicks on ads, Google adds cookies as a measure to protect the user's privacy. These cookies expire in 30 days.

Google also use separate servers for conversion tracking and search results, also to protect privacy.

I think it actually works that way.

Conversion tracking actually involves adding or placing cookies on a user's computer when he/ she clicks on an ad. Google adds them to protect the user's privacy. Then when the user reaches one of your conversion pages, his/ her browser sends the cookie to Google and a small conversion tracking image is displayed on your site. When such match is done, this results to a successful conversion for you.

Hey now that LM and SEOGoat answered the question maybe we could get a few unqualified, uninformed people to random guesses as to how conversion tracking works and why it is done that way.
No need for facts as those were already presented.

Personally I think they use cupcakes instead of cookies (cupcakes are a proprietary Google technology). They do this to reduce food born illnesses from infecting users computers, and because the imps that power the internet think they are tastier.
The stats in GA are different from other analytics packages because of the superior cupcake technology. And I predict that in the near future they will caffeinate the cupcakes to make the imps more hyperactive and speed up tracking so we can get our reports the month before the conversions occur.