Final answer:
The accumulated depreciation account is not a cash fund but an accounting entry that represents the depreciation of an asset over time. It is a contra asset account and does not consist of actual cash for asset replacement.
Step-by-step explanation:
The statement that the accumulated depreciation account represents a cash fund available to replace long-lived assets is false. Accumulated depreciation is an accounting concept that represents the total amount of depreciation expense that has been recorded against a long-lived asset. It is a contra asset account that reduces the book value of the asset it is associated with over time. Instead of a cash fund, it represents the allocation of the cost of an asset over its useful life, reflecting wear, tear, and obsolescence. This means that there is no actual cash set aside in this account. Companies must plan separately for the replacement of assets through other means, such as setting aside cash reserves or planning for capital expenditures.