AdSense is an advertisement application run by Google. Website owners can enroll in this program to enable text, image, and more recently, video advertisements on their websites. These advertisements are administered by Google and generate revenue on either a per-click or per-impression basis.
I think Google adsense is more than that, one need to know the system in and out before going into it. You can going here for Google adsense TOS: google.com/adsense/terms
I believe that is exactly what Google Adsense is however you are correct in stating that you should know it inside and out. The same is also true about Google Adwords, SEO and everything else related to making money with Adsense. You need to understand how each aspect works together to earn you money. Seo is probably the most important aspect as it really does cover everything from keyword optimization to article marketing to get backlinks as well as exposure. There is so much good free information on forums like this and websites like mine, www.SimpleAdsense.com that anyone not making money with Adsense has either picked a horrible subject that no one wants to learn about or has not followed at least the basics of SEO. People must also understand that unless they have a site that is incredibly popular with lots of good targeted traffic then they will never get rich with 1 or 2 or 3 or even 4 websites. The trick really is choosing many different niches and creating 30, 40, 50 or more websites. Although you can often use the same niche and create many sites out of it as well I believe it better to have several different niches. Sounds like a lof of work doesnt it? Well there are tricks to make things much easier for you such as using PLR content. You really need to check out my website that is all about making more money with Google Adsense, subscribe to my site and you will have access to some fantastic Free e-books that can start helping you earn more money with Adsense! You can subscribe at www.simpleadsense.com/free-ebook-downloads/