Final answer:
In cash flow diagrams, arrows pointing upwards indicate positive cash flows, not negative. Therefore, the correct answer to the statement is false.
Step-by-step explanation:
In a cash flow diagram, the common convention is that vertical arrows pointing upwards represent positive cash flows, such as income, receipts, or savings. Conversely, the vertical arrows that point downwards show negative cash flows, indicating expenses or payments. Thus, the statement that vertical arrows pointing upwards represent a negative cash flow is false. Cash flow diagrams are important in various fields, including personal finance, project management, and engineering economics, as they visually represent cash flows over time.