Final answer:
The false statement in the context of data flow diagrams is that sources and destinations are depicted by parallel horizontal lines; they are actually represented by rectangles or squares.
Step-by-step explanation:
The statement related to the construction of data flow diagrams (DFDs) that is false is: Sources and destinations are depicted by parallel horizontal lines, between which the name of the entity is shown. This is not accurate; in DFDs, sources and destinations, also known as external entities, are typically represented by rectangles or squares, not parallel lines. The other statements are correct: The level 0 diagram is indeed the next level down from the context diagram, providing a more detailed view of the system's major processes and data flows. Additionally, if the level 0 diagram has specific movements of data depicted with arrows going into and out of a process, these should be reflected in the same manner in the lower-level diagrams of that process. Lastly, arrows do indeed represent pathways for data within the diagram.