For example, how many words can we form from the letters in the word google?
First I thought you counted how many different letters there are in this case 4, therefore in each spot (6 spots) there are 4 different choices. So the amount of words is $4^6$?
I found out this is wrong and instead you use the idea of a multinomial and calculate $\frac{n!}{a_1!a_2!,...,a_k!}$ where $n$ is the amount of letters in the word, here n = 6, and then $a_1="g"$ which appears twice and so forth.
Why do we divide by the $a_k!$ factorial terms? Do we not lose possible words?
The reason you divide by $a_k!$ is to avoid multiple counting for each of the arrangements of the identical letters.
Imagine the letters $AAAMNP$. Let's affix a subscript to each of the $A$s. So you can have, for example,
$PA_1NA_2MA_3$, or
$PA_2NA_1MA_3$, or
$PA_1NA_3MA_2$, etc.
The word in each case is $PANAMA$, but simply taking $6!$ words multiple-counts $PANAMA$ six times (and every other permutation, like $AAMPNA$).
That's why you divide by the factorials of the multiplicities of the identical letters.
(Also, small difference in all of the six-letter words that can be made from the letters in GOOGLE ($6!/2!2!$) and the number of six-letter words that can be made using only G, O, L, and E ($4^6$).)