Final answer:
Use the 'Expense' form to record a bill payment made with a credit card immediately when receiving a product or service. Credit cards function as a short-term loan from the credit card company to the buyer, unlike debit cards, which transfer funds directly from the buyer's bank account to the seller.
Step-by-step explanation:
When recording a bill payment made with a credit card at the time the product or service is received, the correct onscreen form to use is Expense. This is because using a credit card implies that the payment is made immediately to the seller while the buyer is actually taking a short-term loan from the credit card company. A debit card, similar to a check, instructs the bank to transfer funds directly from the user's account to the seller. However, with a credit card, the credit card company advances funds to the seller, and the amount spent is billed to the user at the end of the billing cycle. Smart cards are different in that they store a specific value for use in transactions but are often limited to certain purchases or locations.