Final answer:
The financial information for an internal service fund is reported in the proprietary fund financial statements and either the governmental or business-type activities columns of the government-wide financial statements, depending on its primary users.
Step-by-step explanation:
The financial information about an internal service fund should be reported in the proprietary fund financial statements and the correct answer is C) either the government activities column or the business-type activities columns of the government-wide financial statements. This depends on whether the internal service fund predominately serves governmental activities or business-type activities. An internal service fund is used to account for activities and services provided on a cost-reimbursement basis, predominantly to other departments or agencies within the government itself, or to other governments, with occasional services provided to external parties. This kind of fund is accounted for in a manner similar to a private business enterprise. Therefore, when an internal service fund predominantly serves governmental activities, it should be included in the governmental activities column of the government-wide financial statements. In contrast, if it mostly serves business-type activities, its financial information should be represented in the business-type activities column.