Can Select statement be used along with Update statement in an SQL Query?

Yes that can be used ,
You can update one field by selecting from another field / table.

following query will help you to update multiple columns at once

update tblOuter
set colOuter1 = a.colInner1,
colOuter2 = a.colInner2,
colOuter3 = a.colInner3,
from ( select colInner1,colInner2,colInner3
from tblInner
where conditions on tblInner columns
) as a
where condition on tblOuter's columns

be careful with your where conditions..........

Yes , You can use..

yes you can use select statment in update
Example:-
update employees
set salary=10000
where employee_id=select employee_id from employees where last_name='king' and department_id=10;

Yes you can...
Here some examples for u...

1)
UPDATE Table1
SET Table1(col1) = (SELECT Table2(col1)
FROM Table2
WHERE some condition);


2)
UPDATE Table1
SET Table1(col1)='xxxxxxxxxx'
WHERE Table1(col2)=
(
SELECT ab.Table2(col2)
FROM Table1 a, Table2 ab
WHERE a.Table1(col3)=ab.Table2(col3)
);

3)
UPDATE Table1
SET Table1(col1) = ( SELECT Table2.col1
FROM Table2
WHERE Table2.col2 = Table1.col2)
WHERE EXISTS
( SELECT Table2.col1
FROM Table2
WHERE Table2.col2 = Table1.col2);

Yes you can use SELECT statement as a subquery for updating a particular column in UPDATE statement