False.
In a typical configuration involving a transistor and an LED, the cathode of the LED is usually connected to the emitter of the transistor, while the anode is connected to the power supply (or a resistor leading to the power supply). The transistor acts to switch the LED on or off when the base of the transistor receives a signal.
If you connect the cathode directly to the collector, the LED will not function correctly in most standard circuit designs.