Final answer:
The mentioned statement is false; in a physical Data Flow Diagram, data stores are not just turned into encrypted word processing documents but are detailed in specific formats and storage methods.
Step-by-step explanation:
The statement is false. When creating a physical Data Flow Diagram (physical DFD) from a logical DFD, the data stores are not typically converted into encrypted word processing documents. Instead of focusing solely on data types and structures like word processing documents, a physical DFD addresses actual hardware, software, files, and people involved in the information system. It shows how the system will be implemented, including the physical routes data will take, the processes that will manage the data, and the specific formats and storage methods that will be used, which can include databases, files, or other storage systems, not just word processing documents.