Question

Central and state Taxes are ________ creditors​

Answer 1

Answer:

Sundry Creditor

Explanation:

Im not sure but tell me it's right or wrong?

Answer 2

Answer: Central and State Taxes are Preferential Creditors.

Explanation: A preferential creditor is a creditor receiving a preferential right to payment upon the debtor's bankruptcy under applicable insolvency laws.

When a government is owed taxes, they are on the top of the list to get paid.