How does Android backup and restore work

Hi All,

So I am new to Android and have created a few threads in the last couple of days but this should be my last one for now!

I am interested in how backing up and restoring works with Android handsets, specifically in terms of my preferences and settings etc.

I have just got an S3 but I am contemplating returning it and getting a One X instead. If I do this will my Google account restore my applications, preferences and other such data from Google?

I have got my phone set up how I like it so keen not to lose all the information.

Thanks