Since the potential energy of an object depends on the acceleration due to gravity and since the acceleration due to gravity decreases as altitude increases, we can conclude that the potential energy of an object decreases as altitude increases.

Correct Answer: False
The potential energy of an object does not depend on acceleration due to gravity at the instantaneous position of the object but depends on the acceleration due to gravity at the reference point (such as the surface of the earth). Hence, potential energy increases as altitude increases.