Final answer:
Accounting information is used to assist financial decisions but is not used by financial statement users to plan and control company operations; that is the function of the company's management.
Step-by-step explanation:
Accounting information is utilized by financial statement users in multiple ways. However, one incorrect option among the list provided is to plan and control a company's operations. This is because while accounting information does help in decision-making processes such as determining whether to buy, sell, or hold equity and debt instruments, deciding whether to invest in a company, and evaluating borrowing capacity to determine the extent of a loan to grant, it is management, not financial statement users, who use accounting information to plan and control a company's operations.
When it comes to accessing financial capital, firms have to make a critical choice between borrowing through banks or issuing bonds, and selling stock. Borrowing allows a firm to retain control of its operations without being subjected to shareholders, but also commits it to fixed interest payments regardless of income. Conversely, selling stock involves ceding some ownership of the company to the public and becoming accountable to a board of directors and the shareholders.
To sum up, the wrong choice in how financial statement users employ accounting information is the option that mentions planning and controlling a firm's operations, which is typically an internal management function rather than a decision made by outside statement users.