As far as display goes, ads can still show, depending on density. I've seen the bot read a page with the word and still show (political pages, interviews). If the word makes the whole slant negative, that seems to throw up a stop.
Sometimes, very rarely, Google is not displaying ads despite I don't use any vulgarities - these are technical pages about technology. I am totally puzzled because I don't know which word Google didn't like. How to find out which word was/is causing the problem?
I have a site about air guns (pellet guns, airsoft, etc.), and several of the pages will not show AdSense ads because their bot picks up the individual word "guns" or "machine guns" etc. It's a headache.