It is not an oversimplified explanation, it is a flat out wrong explanation.
Ray tracing is a fundamental technique to determine visibility of primitives. By itself, it does not generate images.
One can apply ray tracing techniques to create images or parts of them: for example, rendering reflections with ray tracing is an application of it. So is rendering AO using ray tracing. Or path tracing, it is a method for simulation indirect light using ray tracing. It is neither a sub nor a superset of ray tracing.