Fungi are able to break down dead or decaying matter but are unable to digest the cellulose in wood.

Name: Fungi are able to break down dead or decaying matter but are unable to digest the cellulose in wood.
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Quizplus · Accepted Answer

Fungi are actually able to digest cellulose in wood, thanks to enzymes called cellulases. This allows them to decompose dead trees and release nutrients back into the soil.

Fungi Are Able to Break Down Dead or Decaying Matter